Interbank call rates, the rates at which banks borrow short-term funds from each other, were trading higher at 8.80/8.85% versus previous close of 8.00/8.10% on Tuesday as banks scrambled to fulfill their fortnightly requirements ahead of local holiday on April 24 on account of Lokh Sabha polls in Mumbai. The rates are also higher as banks usually prefer to borrow for their fortnightly requirements in the first week of reporting cycle, in order to avoid the volatility of rates going further.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 21296 crore through repo auction on April 23, 2014. The banks via LAF borrowed Rs 21127 crore through repo auction and parked Rs 4233 crore via reverse repo window on April 22, 2014.
The overnight borrowing rates touched a high and low of 8.90% and 8.50% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.71% on Wednesday and total volume stood at Rs 24844.57 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.67% on Wednesday and total volume stood at Rs 23478.30 crore, so far.
The indicative call rates which closed 8.00/8.10% on Tuesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far
