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Call rates trade higher on Tuesday as demand picked up slightly

10 Jan 2012 Evaluate

Interbank call money rates were trading at 8.70/8.75 percent, marginally higher from Monday’s close of 8.60/8.70 percent, as demand picked up slightly after banks borrowed more with liquidity remaining tight, and outflows related to government borrowing seen further weighing on the cash position. However, Indian cash rate ended lower on Monday as demand softened in the latter half of the day, but remained above the central bank’s repo rate of 8.50 percent, due to outflows for tax payments and a government bond sale last Friday.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,25,280 crore through repo window on January 10, 2012. While, banks using LAF borrowed Rs 1,10,110 crore through repo window on January 09, 2012.

The overnight borrowing rates has touched a high of 8.75% and a low of 8.00%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.59% on Monday and total volume stood at Rs 11,692.00, on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.52% on Monday and total volume stood at Rs 37,478.70 crore, on the same day.

The indicative call rates which closed at 8.60/8.70% on Monday 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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