India CBLO o/n rate falls on reporting day, call steady

MUMBAI, Nov 6 (Reuters) - Indian overnight cash rate at the collateralised market fell on reporting Friday as most banks had already funded their reserve needs, while the inter-bank call money was steady, helped by the RBI's reverse repo auctions.

At 2:10 p.m., the CBLO cash maturing on Monday was trading at 1.50 percent, compared with Thursday's weighted average rate of 2.83 percent. Overnight money in the inter-bank market INROND= traded at 3.20/30 percent, little changed from its previous close of 3.30/40 percent.

The central bank conducts liquidity adjustment auctions on a daily basis through which it absorbs surplus funds with banks at 3.25 percent and lends at 4.75 percent. It holds two such auctions on reporting Fridays to check volatility.

"Banks have covered their needs well before today's reporting," said a senior trader at a private bank.

Banks have to report their liabilities to the central bank once in two weeks and park 5 percent of their deposits as cash reserves.

Banks parked 725.50 billion rupees with the central bank at Friday's morning reverse repo auction. (Reporting by Boby Michael; Editing by Ramya Venugopal)