Interbank call rates were trading higher at 8.70/8.80% against its previous close of 8.65/8.70% and way above the central bank's key lending or the repo rate of 8%, as banks continued demand to borrow in second week of reporting fortnight. However, rates may ebb as current reporting fortnight draws to its close.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 21691crore through repo auction on April 29, 2014. The banks via LAF borrowed Rs 21644 crore through repo auction and parked Rs 2222 crore via reverse repo window on April 28, 2014.
The overnight borrowing rates touched a high and low of 8.80% and 8.70% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.70% on Tuesday and total volume stood at Rs 23768.05 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.75% on Tuesday and total volume stood at Rs 24358.90 crore, so far.
The indicative call rates which closed 8.65/8.70% on Monday 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.
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