Interbank call rates were trading higher at 7.80/7.90% versus Monday’s close of 7.05/7.10%, as demand remained higher at the start of fresh reporting fortnight. The rates are expected to remain around these levels for the week as banks usually prefer to borrow their fortnightly requirements in the first half of reporting cycle, in order to avoid volatility of rates going further. Nevertheless, the prevailing comfortable liquidity situation has prevented call rates to move above the repo level.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 10862 crore through repo auction on May 06, 2014. It borrowed Rs 16050 crore via repo window and parked Rs 16731 crore via reverse repo window on May 5, 2014.
The overnight borrowing rates touched a high and low of 8.10% and 7.80% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.09% on Tuesday and total volume stood at Rs 30062.01 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.95% on Tuesday and total volume stood at Rs 53743.35 crore, so far.
The indicative call rates which closed 7.05/7.10% 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.
