Recap: Flood Of Funds Continues To Keep Overnight Rates Cushy

With the banking system awash with cash, call rates stayed comfortable around 5.60-5.85 per cent last week.

There was no rush among banks to borrow funds to cover their reserve requirements as overnight rates were expected to rule soft this week, which is the concluding one of the reporting fortnight.

At the daily repo auction, the Reserve Bank of India, on an average, received bids of around Rs 20,000 crore, which is testimony to the profusion of liquidity in the market. The central bank received bids aggregating Rs 1,05,090 crore and accepted bids worth Rs 84,071 crore.