KARACHI, Nov 1: The State Bank on Monday sucked in Rs4.15 billion from a fairly liquid inter-bank market through sale of one-week repurchase agreements using treasury bills as collaterals.

The open market operation conducted for this purpose generated Rs8.35 billion bid but the central bank sold Rs4.15 billion treasury bills for one-week repo at 2.15 per cent and rejected the rest.

Bankers said the market had an estimated surplus of Rs8-10 billion even after the OMO, adding that overnight call rates improved only marginally to 0.75 per cent from 0.25-0.50 per cent.

The central bank has been draining out liquidity from the banking system through OMOs after a huge inflow of Rs85 billion through maturity of treasury bills inundated the market last week.

These OMOs are also providing small help to the rupee in its fight against the rising US dollar.

While draining out liquidity from the system, the SBP has not let banks run short of cash because they are in need of it to finance deposit withdrawals for pre-Eid purchases.