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Indian call closes above 20 pct on low supplies

BOMBAY: Indian call rates INROND firmed up to close above 20.0 percent on Thursday amid reduced supplies from big lenders and increased demand for funds ahead of a bank holiday on Saturday.

Call rates closed higher at 20.0-25.0 percent on Thursday compared to opening levels of 13.0-16.0 percent.

Banks in the main commercial centre of Bombay are likely to be closed on Saturday on account of a holiday in the state of Maharashtra.

Dealers said rates will remain firm on Friday as big lenders cut exposures after purchasing government bonds from the Reserve Bank of India's sale list.

Data released by the RBI showed it mopped up 33.67 billion rupees on Tuesday and Wednesday through the sale of the 12.32 percent 2011, the 12.25 percent 2008 and the 12.0 percent 2008 bonds.-Reuters