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BANKS PULL OUT RS 59.3K CRORE FROM RBI REPO WINDOW
June, 11th 2010

On Thursday, banks have borrowed slightly less, at Rs 59,300 crore, from the Reserve Bank of Indias special repo window. On Wednesday and Tuesday, these banks had raised Rs 66,170 crore and Rs 68,055 crore, respectively. The one-day call rate ended at 5.15-5.30 percent as against 5.20-5.35 percent on Wednesday. In 63 trades, around Rs 5,440 crore were transacted in the call money market.

Says S Srinivasa Raghavan, vice-president and head of treasury at IDBI Gilts, Liquidity is expected to remain low in June on account of advance tax outflows and 3G payments. He added that once the government spending starts, the money would flow back into the system.

 
 
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