India's call rate hits its highest since March 28 as qtr-end supply wanes
MUMBAI, June 30
MUMBAI, June 30 (Reuters) - India's one-day call rate was trading at 9.20 percent, its highest since March 28 as banks refrained from lending due to the June-quarter ending.
Typically banks do not want to lend on the last day of the quarter as this requires setting aside capital which means lower capital adequacy ratio on their balance sheets.
The collateralised borrowing and lending obligation (CBLO) rate was at 9.49 percent with a weighted average rate of 9.19 percent.
On March 28, the call rate had touched 13.75 percent.
Some dealers do not expect the call rate to go beyond 10 percent on Monday as banks can borrow against collateral from the Reserve Bank of India under the marginal standing facility at 9.00 percent and those who do not have government bonds as collateral, have mostly covered their needs. (Reporting by Suvashree Dey Choudhury; Editing by Anupama Dwivedi)
- Exclusive: Angry with Washington, 1 in 4 Americans open to secession
- Scots spurn independence in historic vote, devolution battle begins |
- Alibaba surges 38 percent on massive demand in market debut |
- Eight bodies found after attack on Guinea Ebola education team
- French jets strike in Iraq, expanding U.S.-led campaign against Islamic State |