Banks on Thursday parked Rs 71,520 crore with the Reserve Bank of India (RBI) through the reverse repo route, which is used to suck out excess liquidity from the system.

While liquidity remained abundant, funds parked with the central bank on Thursday through the reverse repo window was the lowest in nearly six months. Since April, banks were depositing over Rs 1,00,000 crore on a daily basis with the central bank. But since September 17, there have been only three occasions, including on Thursday, when the level has dropped below the Rs 1,00,000-crore level.

BSE  |  NSE Price

Also Read   Related Stories News Now - RBI accepts bids for bonds worth Rs 1,969 cr - Kharif loan disbursement down 30% - State Bank of Hyderabad to up SME advances - RBI, Sebi to regulate NCDs jointly - Primary dealers feel the heat of govt borrowings - RBI cautions banks on realty exposure

Also Read   Related Stories News Now - Markets end flat - IFC plans to invest in Malaysia's Khazanah healthcare arm - Cong leaders must work together for winning elections: Scindia - Hotel Leelaventure redeems outstanding bonds worth $41.6 mn - Ex-Galleon portfolio manager testifies against Rajat Gupta More

Further, with the festival season currently on, bank customers were also withdrawing higher amount of cash to meet their spending needs, said a banker.

Despite the drop in the use of reverse repo, there has been no pressure on the overnight call money rate. According to Clearing Corporation of India data, call rate hovered between 1.75 per cent and 3.35 per cent on Thursday. The weighted average was 3.26 per cent, at the same level as yesterday.

Bankers said that there was more demand for loans. With Eid and Navratras, there was a healthy demand for consumer and auto loans. In the coming weeks, as consumers step up purchase of durables ahead of Diwali, demand for loans would also rise, they added.

“The demand from the infrastructure sector is very strong and we expect it to pick up further with the thrust being given to the national highways programme,” said a bank chief.

In addition, some of the private sector players, which had been missing from the market fearing delinquencies are beginning to claw their way back into the market.

During the first fortnight of September, bank credit flow increased by over Rs 18,374 crore, though the overall growth during the year up to September 11 fell to 13.24 per cent.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - IFC plans to invest in Malaysia's Khazanah healthcare arm - Cong leaders must work together for winning elections: Scindia - Hotel Leelaventure redeems outstanding bonds worth $41.6 mn - Ex-Galleon portfolio manager testifies against Rajat Gupta

Tags : RBI | central bank   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More