Interbank call rates were trading higher at 8.00/8.05% versus Tuesday’s close of 7.70/7.80%, as demand remained on higher side despite being second week of reporting cycle. However, further uptick of overnight rates beyond these levels is unlikely as most banks would have already fulfilled their fortnightly requirements. Nevertheless, last minute demand from banks cannot be completely ruled out.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 10439 crore through repo auction on May 28, 2014, while it borrowed Rs 15969 crore through repo auction and parked Rs 12216 crore via reverse repo window on May 27, 2014.
The overnight borrowing rates touched a high and low of 8.05% and 7.85% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.00% on Wednesday and total volume stood at Rs 27910.84 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.99% on Wednesday and total volume stood at Rs 24121.15 crore, so far.
The indicative call rates which closed 7.70/7.80% 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.
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