The Inter-bank call money rates are trading higher at 7.55% from its previous close of 7.35/40% as demand stayed firm even after Reserve Bank of India in its mid-quarter monetary policy review furthered its aggressive stance against the rampant inflation, thereby hiking repo rate and reverse repo rate by 25 basis points each to 7.50% and 6.50% respectively. Call rates are also high as the liquidity in the banking system has also tightened following corporates' advance tax payments.
Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 84,775 crore through repo window on June 16, 2011. While, banks via Liquidity Adjustment Facility (LAF) borrowed Rs 60,250 crore through repo window on June 15, 2011.
The overnight borrowing rates has touched a high of 7.55% and a low of 6.00%, so far.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.36% on Wednesday and total volume stood at Rs 14,233 crore on the same day.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.21% on Wednesday and total volume stood at Rs 54,134 crore on the same day.
The indicative call rates which closed at 7.35/40% on Wednesday 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.
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