Call rate falls on low borrowings

Call money rate ended below 10 per cent as banks’ borrowing requirements came down after the central bank cut cash reserve ratio, dealers said.

The one-day call rate ended at 9.75-10.00 per cent today as against 9.25-9.75 per cent for two-day loans on Saturday. CBLOs ended at a weighted average rate of 8.97 per cent today compared with Saturday’s close of 5.72 per cent.

RBI reduced CRR by 150 basis points from Saturday, infusing Rs 60,000 crore into the system. The central bank resorted to a CRR reduction after severe liquidity tightness propelled call rate to 23 per cent last week.