At the four-day 7-per cent fixed-rate repo held on Saturday, RBI received 27 bids for Rs 8,364 crore and accepted them for the same amount. The apex bank will announce another repo on Ssunday, a RBI release said.

"There is enough liquidity which is one of the reasons for such a high amount going into repos", a money market analyst in a leading investment bank said.

On Saturday, an estimated Rs 15,200 crore came into the system of which the banks parked Rs 8,564 crore in the 7 per cent fixed-rate repo. While Rs 6,407 crore came in due to the maturing of the five-day repo, Rs 7,495 crore came in due to the maturing of the four-day repo. This accompanied bythe fact that Rs 1,300 crore flowed in due to a 50 basis point cut in cash reserve ratio (CRR) effected on Saturday.

Analysts said that a host of inflows are helping the liquidity conditions to improve. About Rs 2,000 crore came into the system due to redemption of the 364-day T-bill on April 7. "There will be a lot of liquidity in the next one month as there are a lot of redemption of T-bills and repayments of government securities," Centurion Bank senior manager S Srinivas said.

ICICI Bank senior executive vice-president PH Ravikumar said, repo will continue to attract huge amounts as banks have surplus short-term funds. According to analysts, deposits in the banking system have shown a record increase in the last fortnight of the last financial year owing to expectations of lower deposit rates in the current financial year. This adds to the fact that $900-million non-resident Indian (NRI) bonds redeemed by the State Bank of India has been in rupees. "A portion of this amount has found its way intodeposits. As a result, banks are flushed with investible surpluses," a debt analyst in a leading brokerage house said.