Interbank call rates were trading in-line with repo rate at 8.00/8.05%, but lower from its previous close of 8.20/25% on Tuesday as demand stabilized despite being the first week of reporting cycle. The rates shot up in previous trading session as Reserve Bank of India (RBI) sucked out excess liquidity through a term reverse repo auction held on Monday. In the four-day term reverse repo auction, RBI sucked out liquidity worth Rs 2,025 crore from the system, compared with the notified amount of Rs 15,000 crore.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 4642 crore through repo auction on June 4. Meanwhile, banks borrowed Rs 7120 crore via repo auction and parked Rs 2398 crore via reverse repo window on June 3, 2014.
The overnight borrowing rates touched a high and low of 8.00% and 7.90% 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 31563.67 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.92% on Wednesday and total volume stood at Rs 28575.35 crore, so far.
The indicative call rates which closed 8.20/8.25% 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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