Call rates end lower - Aug.

Call rates ended lower at 5.25-5.40 per cent on Monday, against Saturday's close of 6-6.10 per
cent. With the beginning of a new fortnight, banks were back to borrowing from the market to
meet their liquidity crunch. Under the liquidity adjustment facility conducted by the Reserve
Bank of India, there were 10 bids for Rs 18,935 crore in the one-day repo auction. In the reverse
repo auction, there were 2 bids for Rs 2,520 crore. In the CBLO auction, there were 666 trades
for Rs 54,992.50 crore in the range of 4-5.73 per cent. — Our Bureau

Call rates end lower

Mumbai, Aug. 4

Call rates ended lower at 4.5-4.7 per cent on Wednesday, against the previous close of 5-5.10 per
cent. Under the liquidity adjustment facility conducted by the Reserve Bank of India, there were
no bids in the one-day repo auction. In the reverse repo auction, there were 5 bids for Rs 1,610
crore. In the CBLO auction, there were 701 trades for Rs 60,938.20 crore in the range of 4.4-5.35
per cent. — Our Bureau

Call rates end higher

Mumbai, Aug. 6

Call rates ended higher at 5-5.10 per cent , against the previous close of 4.5-4.6 per cent. Under
the liquidity adjustment facility conducted by the Reserve Bank of India, there were no bids in
the three-day repo auction. In the reverse repo auction, there were four bids for Rs 6,505 crore.
In the CBLO auction, there were 615 trades for Rs 56,947.10 crore in the range of 4 -5.75 per
cent. — Our Bureau

Call rates close higher

Mumbai, Aug. 9

Call rates closed higher at 5.6-5.6 per cent against Friday's close of 5-5.1 per cent. Under the
liquidity adjustment facility conducted by the RBI, there was one bid in the one-day repo auction
for Rs 3,000 crore. This is the first time after August 2 that banks have borrowed from the RBI.
“Some banks may have had some mismatches, but there is no need for any panic on the liquidity
front,'' said a dealer with a public sector bank. In the one-day reverse repo auction, there were
two bids for 180 crore. In the CBLO auction, there were 666 trades for Rs 56,891.5 crore in the
range of 4.7-5.55 per cent. — Our Bureau

Call rates flat

Our Bureau

Mumbai, Aug. 10
Call rates ended flat at 5.5-5.6 per cent on Tuesday.

Under the liquidity adjustment facility conducted by the Reserve Bank of India, there was one
bid for Rs 2,500 crore in the one-day repo auction. In the reverse repo auction, there were 2 bids
for Rs 215 crore.

In the CBLO auction, there were 645 trades for Rs 50,551.60 crore in the range of 5.25-5.9 per
cent.

Call rate down at 5.3%

Mumbai, Aug. 12

Call rates ended lower at 5.2-5.3 per cent against the previous of 5.7-5.8 per cent. Under the
liquidity adjustment facility conducted by the Reserve Bank of India, there were six bids for Rs
12,540 crore in the one-day repo auction. In the reverse repo auction, there were two bids for Rs
120 crore. In the CBLO auction, there were 602 trades for Rs 51,774.80 crore in the range of
5.11-5.73 per cent. — Our Bureau

Call rate ends lower

Mumbai, Aug. 13

The inter-bank call rate ended lower at 5-5.10 per cent on Friday, against the previous close of
5.2-5.3 per cent. Under the first liquidity adjustment facility conducted by the Reserve Bank of
India, there were 2 bids for Rs 5,100 crore in the three-day repo auction. In the reverse repo
auction, there were no bids. In the second LAF, there were 7 bids for Rs 8,350 crore in the repo
auction. In the reverse repo auction, there were 27 bids for Rs 6,345 crore. In the CBLO auction,
there were 402 trades for Rs 23,944.55 crore in the range of 3-5.75 per cent. — Our Bureau

Call rate ends higher

Mumbai, Aug.16

The inter-bank call rate ended higher at 5.75-5.80 per cent on Monday, against the previous of
5.6-5.7 per cent. Under the liquidity adjustment facility conducted by the Reserve Bank of India,
there were 15 bids for Rs 25,550 crore in the one-day repo auction. In the reverse repo auction,
there were no bids. In the CBLO auction, there were 567 trades for Rs 50,476.90 crore in the
range of 5.25-5.75 per cent. — Our Bureau

Tight liquidity pushes up certificate of deposit rates

Mumbai, Aug. 18
Interest rates on Certificate of Deposits have been inching up over the past few months due to
tightness in liquidity, especially at the shorter end. CD rates have seen an increase of 10-15 per
cent over the past one week, and 50-75 basis points over a period of two to three months, said
bankers.

CDs are short-term papers issued by banks and used to surge over tight liquidity situations.

An indication of the tight liquidity is the amount banks borrow from the RBI through the repo
auction. On an average, banks have borrowed more than Rs 10,000 crore daily in the past one
week. From August 11 to August 18, banks have borrowed Rs 84,245 crore.

Liquidity may worsen

The liquidity situation is likely to worsen on account of redemption of government securities

later this month and advance tax payments in September. Liquidity is likely to remain tight until
the government starts spending. But with headline inflation hovering close to 10 per cent, it is
unlikely the government will start spending as that would blunt the impact of the monetary
policy action, said a treasury official with a private bank.

“The Government does not want overnight rates to go up till inflation comes down. As overnight
rates are high, other short term rates are also high. That is why CD rates have moved up. A CD
maturing in December is now at 7.16 per cent, while last week it was at 7 per cent,'' said the
official.

Rising rates

Banks have started hiking deposit and lending rates, to counter the tight liquidity, which is
another reason for CD rates going up.

According to Mr Ashish Parthasarathy, Treasurer, HDFC Bank, CD rates have gone up 50-75
basis points over a period of two to three months, partly due to tightness in liquidity and partly
due to the sluggish growth in deposits. Many banks are also rolling over existing CDs, which is
another reason for the inching up of rates.

“Liquidity is on the tighter side and RBI has also increased policy rates. But bank deposits have
not grown as fast as credit, in percentage terms, over a period of time. This has pushed up CD
rates,” he said.

Kotak Mahindra Bank, hiked interest rates on deposits of up to one year by 25 basis points, in
order to align the rates to money market rates. Mr Mohan Shenoy, Treasurer of the bank, said,
“Initially, in June and July, there was a perception that the liquidity tightness will come to an
end. But now the feeling is that the tightness is going to be there for a prolonged period and may
extend till December. Due to this, the certificate of deposit rates have moved up,” he said.
24 Aug, 2010, 07.14PM IST,REUTERS

BANKS RAISE 79.1 BN RUPEES VIA CDS

MUMBAI: Indian banks on Tuesday raised 79.1 billion rupees via certificates of deposit (CDs),
Thomson Reuters data showed. Canara Bank raised 5.6 billion rupees by selling three sets of
one-year notes with a yield range of 7.80-7.85 percent. It also sold three month-notes for 2
billion rupees at a yield of 7.05 percent.

Oriental Bank of Commerce raised 11.25 billion rupees in four tranches. It sold 3.25 billion
rupees of 7.10 percent notes maturing Dec. 15 and 2.5 billion rupees of 7.48 percent notes
maturing Feb. 21 2011.

It also sold one-year notes yielding 7.85 percent for 500 million rupees and three month-notes for
5 billion rupees at 7.05 percent.

Punjab National Bank raised 14 billion rupees through three tranches of three-month notes. It
sold 7.05 percent notes for 10.25 billion rupees, 7.02 percent notes for 1.75 billion rupees and 7
percent notes for 2 billion rupees. Central Bank of India raised 20 billion rupees by selling 7.19
percent notes maturing in December.

ING Vysya sold 5 billion rupees of 7.20 percent three-month notes. HDFC Bank raised 5.25
billion rupees by selling 7 percent three month-notes. Andhra Bank raised 3 billion rupees via
7.10 percent three-month notes. Federal Bank sold 2 billion rupees of 7.16 percent maturing Dec.
3. State Bank of Travancore sold 2 billion rupees of 7.80 percent one-year notes.

Corporation Bank sold 6 billion rupees of 7 percent three month-notes. Punjab and Sindh Bank
sold six month-notes worth 3 billion rupees at a yield of 7.60 percent.

The yield on the three-month Reuters CD benchmark was at 7.05 percent, down from Monday's
7.15 percent, and secondary volumes rose to 2 billion rupees from 1.25 billion rupees on
Monday. Indian banks had issued CDs worth 38 billion rupees on Monday.

25 Aug, 2010, 02.20PM IST,REUTERS

CALL MONEY STEADY; LIQUIDITY AMPLE

MUMBAI: Indian overnight cash rates were steady near the central bank's main borrowing rate of 4.50 percent on Wednesday amid
comfortable liquidity conditions.

At 1:20 p.m., the one-day inter-bank cash was at 4.50/55 percent, from its previous close of 4.50/60. Banks' cash conditions
improved early this week, dealers said. The government paid 140 billion rupees to oil companies as part of its budgeted cash
subsidy, media reports showed.

"Lendable funds are more in the system. I think some banks are using a portion of call money borrowing to buy CDs," a trader at a
state-run bank said. Call money volume, typically lower in the second week of a reporting cycle, has been higher this time as a
result, he added.

Inter-bank call volume was at 125.32 billion rupees on Tuesday compared with a daily average of around 93 billion rupees in the last
week. The current two-week cycle will end on Friday. Banks issued a high 79.1 billion rupees worth Certificates of Deposit (CDs) on
Tuesday to which many other banks were subscribers.

Funds were available at lower rates at the collateralised segment of the money market (CBLO), further easing pressure on the inter-
bank rate. Banks parked 296.95 billion rupees with the central bank via the liquidity adjustment window on Wednesday, showing the
extent of cash surplus in the system. Traders expect call money to stay around current levels through the rest of this week but see it
rising on Saturday, when the new reporting cycle begins.

25 Aug, 2010, 04.55PM IST,REUTERS

GAMMON INDIA SELLS RS 300 MN OF COMMERCIAL PAPER

MUMBAI: Gammon India on Wednesday raised 300 million rupees via short-term debt, according to Thomson Reuters data. It sold
three-month notes yielding 7.80 percent.

26 Aug, 2010, 01.21PM IST,REUTERS

INDIA O/N CALL RATE STEADY ON SURPLUS LIQUIDITY

MUMBAI: Indian overnight call rates were steady around the reverse repo rate in afternoon trade on
Thursday as liquidity remained in the surplus zone for the third day in a row. The interbank rate could
hover around 4.50 percent in rest of the session amid ample liquidity, dealers said.

At 12:43 p.m., the one-day inter-bank cash rate was at 4.50/60 percent, same as Wednesday's close. It
has traded in a range of 4.50-4.70 percent so far in the day, Clearing Corp. of India (CCIL) data showed.
Demand was also muted as this is the second week of the reporting fortnight. "Banks have already
completed a good part of their borrowings last week.

There were very few borrowers and adequate supply in the market today," a dealer with a private-sector
bank said. Overnight rates are likely to stay at these levels till the end of the current reporting cycle, but
may rise again on Saturday when the new reporting cycle begins, dealers said. The current two-week
cycle will end on Friday. Traders said the liquidity condition in the banking system improved early this
week on likely government spending.

The government paid 140 billion rupees to oil companies as part of its budgeted cash subsidy, media
reports said. Reflecting the cash surplus in the banking system, banks on Thursday parked 202.20 billion
rupees in the Reserve Bank of India's reverse repo window while they did not borrow anything at the repo
window.

On Wednesday, banks had parked 296.95 billion rupees with the central bank. The weighted average at
the overnight cash market was 4.60 percent while that of the collateralised segment of the money market
(CBLO) was 4.49 percent, according to CCIL data.

26 Aug, 2010, 02.44PM IST,REUTERS

STATE BANK OF INDIA SELLS RS 6 BN OF CDS

MUMBAI: State Bank of India , the country's top lender, on Thursday raised 6 billion rupees via short-term
debt, two sources, including a top bank official, told Reuters. It sold three-month certificates of deposit
(CDs) yielding 6.95 percent, the sources added.

The bank is not a frequent fundraiser in this market, and the official said the money will be used for
trading purposes.
27 Aug, 2010, 12.30PM IST,REUTERS

CALL RATE STEADY ON WEAK DEMAND FROM BANKS

MUMBAI: Indian call money rates remained largely steady near the central bank's reverse repo rate amid
weak demand from banks on the last day of the fortnightly reporting cycle, dealers said. Banks have
already covered their borrowing to maintain the mandatory cash reserves last week itself, resulting in
muted demand in the call market this week, keeping cash rates steady.

At 12.15 p.m, the three-day interbank cash rates was at 4.55/60 percent and may hover near 4.5 per cent
rest of the day, dealers said. Overnight cash rates had ended at 4.65/75 percent on Thursday. So far in
the day, the call rates traded in a band of 4.50-4.65 percent, according to Clearing Corp of India (CCIL)
data.

"Demand in the call market is less as banks have already covered their borrowing requirements. There is
more demand at the collateralised window," a dealer with a private bank said. Dealers expect cash rates
to inch up at the start of the new reporting cycle beginning on Saturday as banks typically borrow more in
the first half of the bi-weekly cycle. The weighted average in the three-day call money market was 4.60
percent while that in the collateralised borrowing and lending obligations (CBLO) window was 4.11 per
cent, CCIL data showed.

Banks parked 61 billion rupees at the central bank's reverse repo window at the morning auction on
Friday and did not borrow from the RBI, reflecting easy cash conditions in the system. This is the fourth
day in a row that banks parked money with the central bank, instead of borrowing from it. Liquidity in the
system improved early this week, which dealers attributed to likely government spending. The
government paid 140 billion rupees to oil companies as part of its budgeted cash subsidy, newspapers
reported.

27 Aug, 2010, 12.36PM IST,REUTERS

INDIAN DEBT YIELDS APPEALING FOR FIIS: RBS

MUMBAI: Indian debt offers a good return to foreign investors and the interest rate differential will attract
more foreign fund flows into corporate debt, a senior bank treasury official told Reuters on Friday. Foreign
institutional investors (FIIs) have so far invested 8.7 billion rupees in Indian debt so far this year compared
with 1.05 billion rupees in 2009.

"The yield pick-up in India is very attractive for foreign institutional investors and with the FII holdings of
debt having nearly doubled in the last 12 months, the gap between FII holdings in debt and equity has
narrowed considerably," said Ramit Bhasin , head of markets, at Royal Bank of Scotland . "The gross 10-
year yield differential of 5.5 percent is very attractive even after accounting for cost of funds and forward
dollar cover for the FIIs," he said, referring to the differnece between U.S. and Indian federal yields.

Rising interest rates in India to counter inflation, at a time when authorities in Europe and U.S. are still
following an easy monetary policy has led to an attractive rate differential. The spread of corporate bond
yields over corresponding government yields in the five-year segment stands at around 65 basis points,
according to Thomson Reuters data. Bhasin also expects a strong demand for debt domestically at 8.25-
8.50 percent levels for the 10-year bond from insurance companies and pension funds.

"In the next few months with the rate hikes behind us, we expect more FII flows into debt and especially
corporate bonds," Bhasin said. "I think going forward more limits under corporate limits will be available."
The current limit on FII investment in Indian corporate bonds currently stands at $15 billion.

THREE MORE RATE HIKES IN 2010

The Reserve Bank of India (RBI) may lift policy rates in September, November and then again in late
December, narrowing the corridor between the repo rate and the reverse repo to 100 basis points from
the current 125 basis points. "The 1-year OIS rate at 6.25 percent implies three rate hikes of 25 basis
points each," said Bhasin. According to Bhasin, 1-year OIS yield at 6-6.25 percent is fair value and he
recommends receiving it at 6.50 percent levels in the near-term.

An expected cash crunch in the sytem in the second-half of September as a result of advance tax
outflows mid-month will be temporary and the central bank will maintain adquate liquidity. "While RBI may
want liquidity to be tight for the next six months to fight inflation, they will ensure that there are no
abnormal spikes and the market is orderly," he said. He expects the RBI to conduct the second liquidity
adjustment facility if there is too much cash shortage. He expects inflation to trend down on a month-on-
month basis to around 7 percent by March 2011, while the central bank projects it at 6 percent in the
same period.

30 Aug, 2010, 02.18AM IST,

CALL RATES LIKELY TO HOVER AROUND 4.75%-4.90%

CVR Rajendran, Head of Treasury, Corporation Bank

Banks have been parking funds with RBI at 4.50% during the past week. Although the amount has been relatively small, the fact
that funds are being parked with RBI ahead of the reporting Friday is providing a marginal sense of relief.

Apart from the money parked in LAF, substantial money has gone into liquid mutual funds, thus creating a buffer for any future
outflow. Government spending is happening in a phased manner. It is our expectation that call money and CBLO rates would hover
around 4.75%–4.90 % and 4.50%– 4.65%, respectively.

This would be the first week of the new reporting fortnight. The total scheduled outflows of Rs 12,000 crore towards last week’s
Friday auction subscription will be marginalised by the coupon inflow of Rs 7,440 crore. We don’t expect any spike in overnight
rates.

Apart from the one-off loan growth on account of 3G payouts, we have not seen meaningful growth in credit during this month.
Banks may slow down their efforts in raising resources through CDs and bulk deposits for want of profitable deployment avenues.

The certificate of deposit (CD) rates have come off by 15–20 bps during the last week and it may go down further during this week.

20 Sep, 2010, 08.48PM IST,REUTERS

OIS rates end steady after rangebound trade
MUMBAI: Overnight Indexed Swap (OIS) rates ended steady on Monday after a rangebound
trade as dealers awaited cues on the RBI's policy going forward.

Dealers said they were also awaiting the outcome of the Fed meet on Tuesday for further cues.

The benchmark five-year swaps rate ended up one basis point on the day at 7.10 per cent after
easing to 7 per cent in intra-day trade, according to Thomson Reuters data.

The one-year swaps rate also ended up one basis point at 6.37 per cent after easing to 6.32 per
cent intra-day.

"Trading was rangebound and lacklustre and further cues on policy are awaited," said a trader
with a foreign bank.
Cash conditions also continued to be tight after an estimated Rs 60,000-crore cash outflow last
week towards companies' advance tax payments.

"We believe room for significant flattening from here is limited, with any moves concentrated at
the long end," Barclays Capital said in a note on Monday.

Volumes in the OIS market was at Rs 4,175 crore, according to the central bank's trading
platform.

20 Sep, 2010, 07.45PM IST,REUTERS

Call rates close largely steady; cash tight
MUMBAI: Indian overnight cash rates closed little changed on Monday as cash conditions
stayed tight after last week's advance tax outflows and some demand from banks in the second
half of the reporting fortnight.

The one-day inter-bank cash rate ended at 6.00/10 per cent, compared with Friday's close of
6.05/15 per cent. It ended at 6.10/6.20 per cent in an illiquid market on Saturday.

The cash rate has moved in a band of 6.00-6.25 per cent during the day.

"Cash conditions are tight and expected to be like this till the end of this month, holding rates
around these levels," said Chetan Shenoy , chief manager, treasury at IndusInd Bank .

Shenoy said cash conditions would continue to remain tight with marginal bouts of easy cash
until until the Reserve Bank of India is comfortable on the inflationary front.

The central bank raised policy rates more aggressively than expected last Thursday and lifted the
repo rate, at which it lends to banks, by 25 basis points to 6 per cent and raised the reverse repo
rate, used to absorb excess cash, by 50 basis points to 5 per cent.

Advance tax payments by companies on Thursday also cut cash with banks, further pushing up
the call rate, dealers said.

India's advance tax payments in July-September rose 13-14 per cent from a year ago, but was
below expectations, P P Srivastava , chief income tax commissioner, Mumbai, told reporters.

The Reserve Bank of India (RBI) also said the repo rate will be the effective policy rate
indicating its intention to keep liquidity tight.

The RBI lent 456.95 billion rupees at the repo auction on Monday compared with Friday's
422.90 billion rupees. Banks did not invest any funds at the central bank's reverse repo window
for the fourth consecutive day.

The weighted average rate in the call money market was 6.23 per cent while that in the
Collateralised Borrowing and Lending Obligation, a secured form of money market lending, it
was at 5.97 per cent, according to the Clearing Corp of India.

Volumes in the call money market were high at 108.04 billion while that in the CBLO market
they were at 689.85 billion rupees, CCIL data showed.

20 Sep, 2010, 01.32PM IST,REUTERS

Cash rates up as tax outflows keep liqudity tight
MUMBAI: Indian overnight cash rates were slightly higher on Monday as cash conditions stayed
tight after the scheduled advance tax outflows last week and on some demand from banks in the
second half of the reporting fortnight. At 1:10 p.m., the one-day inter-bank cash rate was quoted
at 6.10/20 percent, compared with Friday's close of 6.05/15 percent.

It ended at 6.10/6.20 percent in an illiquid market on Saturday. The cash rate has moved in a
band of 6.00-6.25 percent so far during the day. "Cash conditions are tight and expected to be
like this till the end of this month, holding rates around these levels," said Chetan Shenoy, chief
manager, treasury at IndusInd Bank . Shenoy said cash conditions would continue to remain tight
with marginal bouts of easy cash until until the Reserve Bank of India is comfortable on the
inflationary front.

The central bank raised policy rates more aggressively than expected last Thursday and lifted the
repo rate, at which it lends to banks, by 25 basis points to 6 percent and raised the reverse repo
rate, used to absorb excess cash, by 50 basis points to 5 percent. Advance tax payments by
companies on Thursday also cut cash with banks, further pushing up the call rate, dealers said.
India's advance tax payments in July-September rose 13-14 percent from a year ago, but was
below expectations, P.P. Srivastava, chief income tax commissioner, Mumbai, told reporters.

The Reserve Bank of India (RBI) also said the repo rate will be the effective policy rate
indicating its intention to keep liquidity tight. The RBI lent 456.95 billion rupees at the repo
auction on Monday compared with Friday's 422.90 billion rupees. Banks did not invest any
funds at the central bank's reverse repo window for the fourth consecutive day.
21 Sep, 2010, 06.47PM IST,REUTERS
Call money rates end steady, cash stays tight
MUMBAI: Overnight cash rates ended almost steady after rising to 6.25 percent in early trades,
as demand waned later. However, tight cash kept the rate sticky at the repo rate. The one-day
inter-bank cash ended at 5.90/6.00 percent, as against Monday's close of 6.00/10 percent. The
rate moved in the 5.90-6.25 percent band.

"There is no fresh government spending yet this week. We expect the call rate to remain around
these levels this month," said a dealer at a foreign bank. Cash conditions tightened post advance
tax outflows last week. India's top 100 firms paid 381.07 billion rupees as advance tax for July-
Sept, a rise of 16.4 percent year-on-year, an official from the federal finance ministry told
reporters on Friday.

The RBI lent 481.30 billion rupees at the repo auction on Tuesday compared with 456.95 billion
on Monday. Banks did not invest any funds at the central bank's reverse repo window for the
fifth consecutive trading session. The weighted average rate of call money as per Clearing Corp
of India's data was 6.21 percent, compared with previous session's 6.23 percent. The weighted
average CBLO rate was unchanged at 5.97 percent. Volumes in the call money market were
robust at 98.35 billion rupees and that in CBLO were 673.18 billion rupees, CCIL data showed.

21 Sep, 2010, 01.07PM IST,REUTERS

India call money up as cash tight post-tax outflow
MUMBAI: Indian overnight cash rates rose slightly on Tuesday as liquidity remained tight
following the outflow of advance taxes last week.

At 12:51 p.m. the one-day inter-bank cash was at 6.10/6.20 percent, higher than Monday's close
of 6.00/10 percent. The rate moved in a band of 6.00 percent to 6.25 percent.

"There is no fresh government spending yet this week. We expect the call rate to remain around
these levels this month," said a dealer at a foreign bank.

Indian top one hundred firms paid 381.07 billion rupees in advance taxes for July-Sept, a rise of
16.4 percent year-on-year, an official from the federal finance ministry told reporters on Friday.

The RBI lent 481.30 billion rupees at the repo auction on Tuesday compared with 456.95 billion
on Monday. Banks did not invest any funds at the central bank's reverse repo window for the
fifth consecutive trading session.

The weighted average rate of call money as per Clearing Corp of India's data was 6.22 percent,
almost steady from the previous session's 6.93 percent.

The weighted average CBLO rate was 5.98 percent versus 5.97 percent.

Volumes in the call money market were robust at 91.38 billion rupees and that in CBLO were
525.25 billion rupees, CCIL data showed.
21 Sep, 2010, 12.50PM IST,REUTERS
State Bank of India sells 13.25 bn rupees of CDs
MUMBAI: State Bank of India , the country's top lender, on Tuesday raised 13.25 billion rupees
via short-term debt, a senior official at the bank, told Reuters.

It sold three-month certificates of deposit (CDs) yielding 7.04 percent the official said.

23 Sep, 2010, 07.32PM IST,REUTERS

1-yr OIS hits near 8-week high on tight cash worry
MUMBAI: India's overnight indexed swap (OIS) rates ended up on Thursday with the one-year
rate hitting a near 8-week high on tight liquidity worries. Swaps did not fall sharply unlike bonds
after the government announced a reduction in the borrowing programme for October-March and
also raised foreign investment ceiling in debt.

The benchmark five-year swaps rate ended up 4 basis points at 7.07 per cent, after touching a
high of 7.10 per cent intraday, according to Thomson Reuters data.

The one-year swap rate ended up 7 basis points at 6.43 per cent, after touching 6.46 per cent,
highest since Aug. 2.

The 10-year benchmark bond yield ended down 4 basis points at 7.90 per cent, its lowest since
Sept. 9. "What could change for swaps is how liquidity behaves going ahead and on government
spending.

There is not much impact of the borrowing cut news on swaps," said Ananth Narayan G, head of
fixed income, currencies, commodities-South Asia at Standard Chartered Bank. Liquidity has
been tight since last week due to the outflow of advance taxes.

The RBI lent 536.9 billion rupees at the repo auction on Thursday compared with 266.70 billion
on Wednesday. Banks did not invest any funds at the central bank's reverse repo window for the
seventh consecutive trading session. Volumes in the OIS market was heavy at 66.44 billion
rupees, according to the central bank's trading platform.

23 Sep, 2010, 02.30AM IST,PTI

Call rates recover on fresh demand; bonds stronger
MUMBAI: Call rates finished higher at 6.30% at the overnight call money market in Mumbai on
Wednesday due to fresh demand from borrowing banks and the government bond prices also
firmed up further on sustained buying from banks and corporates.

The call money rate ended higher at 6.30% from overnight closing level of 5.90% after moving
in a range of 6.10% and 6.40%. The 7.80% government security maturing in 2020 rose to Rs
99.07 from 98.92 yesterday, while its yield eased to 7.94% from 7.96%.

The 8.13% government security maturing in 2022 moved up to Rs 100.66 from Rs 100.60, while
its yield softened to 8.04% from 8.05%. The 8.08% government security maturing in 2022
looked up to Rs 100.23 from Rs 100.19, while its yield held steady at 8.05%.
The 7.17% government security maturing in 2015, the 8.26% government security maturing in
2027 and the 7.46% government security maturing in 2017 were also quoted higher at Rs 97.98,
Rs 99.05 and Rs 97.25 respectively.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased
securities worth Rs 26,670 crore from 14 bids at the one-day repo auction at a fixed rate of
6.00%.

24 Sep, 2010, 01.42PM IST,REUTERS

India call rates up on higher demand on reporting day
MUMBAI: Indian overnight cash rates rose and was at the central bank's repo rate or its lending
rate as demand was higher on Reporting Friday.

At 1:38 p.m., the three-day inter-bank cash rate was at 6.00/10 percent compared with previous
close of 5.00/10 percent. The rate moved in a wide 5.90-6.30 percent band, Thomson Reuters
data showed. The RBI lent 85.85 billion rupees at the morning repo auction on Friday compared
with a total 536.9 billion rupees on Thursday.

"Demand should come off by late afternoon as people try to cover their needs in the first half,"
said a private bank dealer. Cash conditions tightened after the advance tax outflows last week.
India's top 100 firms paid 381.07 billion rupees as advance tax for July-Sept, a rise of 16.4
percent year on year, an official from the federal finance ministry told reporters on Friday.

The weighted average rate of call money as per Clearing Corp of India's data was 6.10 percent
compared with the previous session's 6.18 percent. The weighted average CBLO rate was 4.82
percent compared with Thursday's 5.40 percent. Volumes in the call money market were robust
at 71.13 billion rupees and that in CBLO were 186.94 billion rupees, CCIL data showed.

27 Sep, 2010, 02.42PM IST,REUTERS

Cash rates rise on tight liquidity
MUMBAI: Indian overnight cash rates rose in afternoon trade on Monday as demand was higher
at the begining of the reporting fortnight.

At 2:03 p.m., the one-day inter-bank cash rate was at 6.20/30 percent compared with Friday's
close of 5.80/5.90 percent for three-day loans, Thomson Reuters data showed.

On Saturday, call rate ended at 6.20/25 percent amid low volume as is typical on the weekend.

Concerns of tight cash loomed ahead of the begining of festival season in October.
"In October, liquidity will remain tight. It will only ease in November. MIBOR fixing should be
around 6.25 percent in October," said a dealer at a foreign bank.

The RBI lent 681.35 billion rupees at the repo auction on Monday, compared with a total 372.3
billion rupees on Friday.

The MIBOR fixing was at 6.24 percent on Monday.

The weighted average rate of call money as per Clearing Corp of India (CCIL) data was 6.24
percent against Friday's 6.07 percent.

The weighted average CBLO rate was 5.83 percent higher versus Friday's 4.77 percent.

Volumes in the call money market were a robust 92.56 billion rupees and that in CBLO were
517.66 billion rupees, CCIL data showed.

27 Sep, 2010, 11.26AM IST,REUTERS

Money markets shut Sept 30 for half-year closing
MUMBAI: Money markets will be closed for trading and settlement on Thursday due to banks'
half-yearly account closing, officials with India's central bank and Clearing Corporation of India
Ltd (CCIL) told Reuters on Monday.

"Since RTGS (real time gross settlement) will be shut, there will also not be any settlement on
Sept. 30th," said N. Venkatraman, junior vice-president at securities settlement department in
CCIL.

All trades on Wednesday will be settled on Friday, said the official with the Reserve Bank of
India (RBI). "This is NI (Negotiable Instruments) Act holiday. So, there will be no trading," said
the RBI official. "We are also sending a notice about this to CCIL," the official added.

27 Sep, 2010, 11.26AM IST,REUTERS

Money markets shut Sept 30 for half-year closing
MUMBAI: Money markets will be closed for trading and settlement on Thursday due to banks'
half-yearly account closing, officials with India's central bank and Clearing Corporation of India
Ltd (CCIL) told Reuters on Monday.

"Since RTGS (real time gross settlement) will be shut, there will also not be any settlement on
Sept. 30th," said N. Venkatraman, junior vice-president at securities settlement department in
CCIL.

All trades on Wednesday will be settled on Friday, said the official with the Reserve Bank of
India (RBI). "This is NI (Negotiable Instruments) Act holiday. So, there will be no trading," said
the RBI official. "We are also sending a notice about this to CCIL," the official added.
28 Sep, 2010, 02.51PM IST,REUTERS
Call rate steady, cash squeeze continues
MUMBAI: Indian overnight cash rates were almost steady on Tuesday as demand was firm, as is
usual at the beginning of a new reporting fortnight, and cash conditions remained tight. At 2:42
p.m., the one-day inter-bank cash rate was at 6.25/30 percent, unchanged from Monday's close,
Thomson Reuters data showed. So far, the call rate traded in band of 6.20-6.30 percent.

Concerns of cash conditions loomed as was evident from the rise in the repo borrowing at the
central bank's liquidity adjustment facility. The RBI lent 703.10 billion rupees at the repo
auction, up from 681.35 billion rupees on Monday. "Banks are overcovering at repo. In reality
the banking system is deficit by 35,000 crore (350 billion rupees)," said a dealer at a private
bank. MIBOR fixing was at 6.25 percent on Tuesday, unchanged from Monday's 6.24 percent.

The weighted average rate of call money as per Clearing Corp of India (CCIL) data was 6.25
percent, steady from its previous 6.24 percent. The weighted average collateralised borrowing
and lending obligation (CBLO) rate was 5.99 percent up from Monday's 5.78 percent. Volumes
in the call money market were a moderate 73.80 billion rupees and that in CBLO were 435.83
billion rupees, CCIL data showed.

29 Sep, 2010, 01.58PM IST,REUTERS

India call rate hits 6-month high on bank demand
MUMBAI: Indian overnight cash rates jumped to their highest in more than six months on
Wednesday as banks' quarter-end demand for funds worsened an ongoing cash crunch after
advance tax outflows, dealers said. At 1:17 p.m., the two-day inter-bank cash was at 7.25/30
percent, its highest since March 23, as per Thomson Reuters data.

It had ended at 6.90/7.00 percent on Tuesday for one-day loans. "Usually, on the last day of a
quarter, there are less lenders in call as banks' capital requirement goes up if they lend on the last
day, which has pushed up the demand," said a dealer at a private bank. Bonds, call, short-term
debt and foreign exchange markets are shut on Thursday for banks' half-yearly account closing.
Banks borrowed 899.25 billion from the central bank's repo window on Wednesday, indicating
the extent of cash tightness.

Traders said banks were borrowing from the central bank's repo window than from the
collateralised borrowing and lending obligation (CBLO) market. Volume in the CBLO market
was at 225.52 billion whereas it was 451.47 billion rupees at close on Tuesday, CCIL data
showed.

29 Sep, 2010, 10.19AM IST,REUTERS

India overnight call rate hits six-month high
MUMBAI: Indian overnight cash rates jumped to their highest in more than six months on
Wednesday as an ongoing cash crunch following advance tax outflows was worsened by quarter-
end demand, dealers said.

At 9:44 a.m., the two-day inter-bank cash was at 7.25/30 percent, its highest since March 23, as
per Thomson Reuters data. It had ended at 6.90/7.00 percent on Tuesday for one-day loans.

"Usually on the last day of a quarter, there are less lenders in call as banks' capital requirement
goes up if they lend on the last day, which has pushed up the demand," said a dealer at a private
bank. Bonds, call, short-term debt and foreign exchange markets are shut on Thursday due to
banks' half-yearly account closing.

MUMBAI: Indian overnight cash rates jumped to their highest in more than six months on
Wednesday as an ongoing cash crunch following advance tax outflows was worsened by quarter-
end demand, dealers said.

At 9:44 a.m., the two-day inter-bank cash was at 7.25/30 percent, its highest since March 23, as
per Thomson Reuters data. It had ended at 6.90/7.00 percent on Tuesday for one-day loans.

"Usually on the last day of a quarter, there are less lenders in call as banks' capital requirement
goes up if they lend on the last day, which has pushed up the demand," said a dealer at a private
bank. Bonds, call, short-term debt and foreign exchange markets are shut on Thursday due to
banks' half-yearly account closing.