Indian call rates unchanged on sufficient cash

(Updates to close, adds CCIL data)

MUMBAI, May 21 (Reuters) - Indian overnight call rates ended unchanged on ample cash in the system as banks met their funding requirements by borrowing from the central bank last week, traders said.

Call rates <INROND=> ended at 6.00/6.10 percent, off an intraday high of 6.25 percent, and unchanged from its previous close.

"Banks have covered their positions for the fortnight and the excess cash which they borrowed from the central bank is now being lent," a dealer with a private bank said.

The weighted average rate in the call money market was 6.07 percent, while collateralised borrowing and lending obligations (CBLO), a secured form of money market lending was 5.56 percent, according to the Clearing Corp of India (CCIL).

Volume in the call money market was 89.96 billion rupees and in CBLO it was 419.56 billion rupees, CCIL said.

The central bank absorbed 270.95 billion rupees from various banks at its daily reverse repo auction on Wednesday, indicating cash conditions in the system are comfortable.

The government sold treasury-bills worth 40 billion rupees on Wednesday, the outflows towards which will be on Friday.

Dealers expect call rates to rise to 7 percent levels after outflows towards the T-bill auctions on Friday and ahead of the increase in cash reserve ratio (CRR) taking effect on Saturday.