Interbank call rates were trading higher at 8.00/8.05% versus its Thursday’s close of 7.10/7.20%, as banks continued to borrow to fulfill their fortnightly requirements with the end of first week of reporting cycle, in order to avoid the volatility of rates going further. Nevertheless, comfortable liquidity condition of banking system provided a lid to the surge of overnight rates.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 11701 crore through repo auction on May 23, 2014, while it borrowed Rs 11519 crore through repo auction and parked Rs 5416 crore via reverse repo window on May 22,2014.
The overnight borrowing rates touched a high and low of 8.15% and 7.85% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.02% on Friday and total volume stood at Rs 27152.18 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.99% on Friday and total volume stood at Rs 32668.50 crore, so far.
The indicative call rates which closed 7.10/7.20% on Thursday 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.
