Indian rate swaps ease slightly on liquidity hopes

MUMBAI, Oct 13 (Reuters) - Indian overnight indexed swaps eased a tad on Monday on expectations the regulators would take more measures to improve cash conditions in the banking system.

* At 4:00 p.m., the five-year swap rate was at 7.20/7.27 percent, a shade lower than Friday's close of 7.21/7.29 percent.

* India is working on more measures to improve liquidity and the country will respond swiftly depending on the needs of the situation, Finance Minister Palaniappan Chidambaram said on Monday. [ID:nBMA001582]

* The central bank cut the cash reserve ratio by 150 basis points to 7.5 percent effective Saturday, freeing up 600 billion rupees of funds in the banking system. (Reporting by Anurag Joshi; Editing by Prem Udayabhanu)