Indian cash rates edge up after advance tax outflows

MUMBAI, Sept 22 (Reuters) - Indian overnight call rates edged higher on Monday as cash conditions continued to remain tight after outflows towards last week's quarterly advance tax payments drained liquidity from the system.

At 3:50 p.m. call rates INROND= were at 14.25/14.50 percent, higher than its previous close of 12.25/12.50 percent.

"Cash conditions are tight after last week's advance tax outflows. We have a shortage of about 750 billion rupees in the system currently," a dealer with a private bank said.

Analysts estimate a total of about 400 to 450 billion rupees exited the system through advance tax payments made by various banks and companies last week.

The central bank did not receive any bids at its daily morning reverse repo auction, while it pumped in 635.95 billion rupees in to the system through the morning repo route, indicating the extent of cash crunch in the system.

The central bank on Friday had pumped in a total of 835.10 billion rupees via the two repo auctions, which according to a Morgan Stanley report is the highest ever repo amount. (Reporting by Swati Bhat; Editing by Ramya Venugopal)