Interbank call rates were trading higher at 8.25/8.30% versus its Tuesday’s close of 8.00%/8.05% on Tuesday and also above repo rate of 8% as demand remained stable at the start of new reporting cycle. The rates are expected to stay in this range for the week as banks usually prefer to borrow their fortnightly requirements early in reporting fortnight, in order to avoid the volatility of rates going further.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 20609 crore through repo auction on June 18, 2014. Meanwhile, banks via three day repo auction borrowed Rs 21011 crore and parked Rs 2723 crore via three days reverse repo window on June 16, 2014.
The overnight borrowing rates touched a high and low of 8.35% and 8.10% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.35% on Wednesday and total volume stood at Rs 28127.08 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.16% on Wednesday and total volume stood at Rs 23901.95 crore, so far.
The indicative call rates which closed 8.00/8.05% 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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