India's bank liquidity surplus rises after a sharp drop last week

The liquidity surplus in India's banking sector increased to more than Rs. 2 trillion rupees (US$ 25.28 billion) on August 3, following a three year-low below Rs. 500 billion (US$ 6.34 billion) last week.

The one-day interbank call money rate stood at 4.80% at 0640 GMT, compared with the previous close of 4.40%, while the overnight triparty repo dealing system (TREPS) was at 4.52%, flat from its previous close.

According to a trader at a private bank, "The next set of outflows would be the non-Goods and Services Tax payments that will go out from the system later in the week, but surplus should remain above Rs. 1 trillion (US$ 12.64 billion) in the near term."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.