Indian cash rates end flat as outflows weigh

(Updates to close)

MUMBAI, June 17 (Reuters) - Indian overnight cash rates ended flat on Tuesday, but cash conditions continued to remain tight due to outflows towards quarterly taxes and ahead of the bond auctions on Friday.

Call rates <INROND=> ended at 8.00/8.10 percent, unchanged from its previous close.

"We have the advance tax outflows this week, so call rates are high," said C. Venkatesh, senior dealer with the Bank of Ceylon.

Traders said most banks have not yet funded their requirements for the fortnight, thus holding call rates around 8 percent. Call rates usually stay at 6 percent when cash conditions in the system are adequate.

Banks have to report their cash balances to the Reserve Bank of India every two weeks and the reporting day for this fortnight falls on this Friday.

Companies and banks will pay the first installment of their advance taxes this week in anticipation of their profits at year-end, squeezing surplus cash with banks.

The central bank will also sell 30 billion rupees worth of treasury bills on Wednesday and another 60 billion rupees worth of government bonds on Friday, at a time when cash is already tight.

The weighted average rate in the call money market was 8.13 percent, while collateralised borrowing and lending obligation (CBLO), a secured form of money market lending, was 7.92 percent, according to the Clearing Corp of India (CCIL).