Interbank call rates were trading higher at 8.05%/8.10%, from its Monday’s close of 7.15%/7.20%, and also higher than the repo rate of 8% as demand picked up momentum at the start of fresh reporting cycle. The rates are expected to remain above repo level for this week as usually banks prefer to borrow for their reporting requirements at the start of reporting cycle. Further, anticipated tight liquidity condition after Reserve Bank of India (RBI) conducts Overnight Reverse Repo Auction of Rs 10,000 crore under LAF on Tuesday is also expected to add to the pressure.
The Reserve Bank will conduct a one day reverse repo variable rate auction for a notified amount of Rs 10,000 crore on September 23, 2014. The auction will be conducted between 3.00 PM and 3.30 PM as per the revised guidelines on Term Repo Auctions issued on February 13, 2014.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 7088 crore through repo auction on September 23, 2014, while the banks via LAF borrowed Rs 1066 crore through repo auction and parked Rs 7512 crore via days reverse repo window on September 22, 2014.
The overnight borrowing rates touched a high and low of 8.10% and 7.90% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.03 % on Tuesday and total volume stood at Rs 32187.79 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.00% on Tuesday and total volume stood at Rs 37633.15 crore, so far.
The indicative call rates which closed 7.15%/7.20% 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, so far.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: