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India call ends up on fiscal year end pressure

BOMBAY: Indian call money inched up higher to close above ten percent on Monday amid large demand for funds at the start of the last reporting period in the current fiscal year, dealers said.

Dealers said supplies were strained as traditional lenders lowered exposures ahead of the financial year-end on March 31.

Call money closed at 9.90-10.25 percent-- off intra-day highs of 10.40 percent-- after opening at 9.50-9.90 percent.

On Saturday, call rates closed at 9.50-9.75 percent.

Banks and financial insitutions normally make loan disbursements to show a higher growth in assets in the balance sheet.

Dealers said central bank refinance at the key bank rate was almost exhausted and banks and primary dealers were availing refinance at ten percent.

The Reserve Bank of India (RBI) said on Monday refinance outstanding at the bank rate on March 25 was 134.98 billion rupees compared with the previous day's 71.20 billion.

The liquidity outstanding at ten percent was 270 million on March 25 compared with 390 million on March 24.-Reuters