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Indian overnight call money rates eased slightly on Monday, amid comfortable liquidity conditions and despite strong demand for funds at the beginning of the fresh reporting cycle.The overnight cash rate ended at 3.75/85 percent, lower than Friday's close of 3.90/4.0 percent. The overnight weighted average call money rate was at 3.89 percent. Volume in overnight cash rates were a high 126.44 billion rupees.Banks parked only 294 billion rupees with the central bank at its reverse repo auction on Monday, compared with 417.85 billion rupees on Friday."Cash is ample and people prefer to see how liquidity pans out for the week. So they don't prefer to park the entire surplus in reverse repo," said a dealer.The CBLO rate was at 3.65 percent and the weighted average rate was at 3.73 percent.Dealers said there are no concerns on liquidity as government is expected to spend in a big way, as reflected in its borrowings under the ways and means advances from the Reserve Bank of India (RBI).The government borrowed 288.68 billion rupees from the central bank in the week ending April 30 from the bank's ways and means advances and in the previous week it had borrowed 313.49 billion rupees, central bank data showed.RBI deputy governor Subir Gokarn also assured that there will not be any significant pressure on liquidity in the first half of the current financial year despite high government borrowing and credit offtake."Liquidity situation is under control. Taking into consideration government's borrowing schedule and credit offtake, we don't see any excessive pressure on liquidity situation in first half of fiscal," Gokarn said in Kolkata.(Reporting by Anurag Joshi; Editing by Ramya Venugopal)
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