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Call rates stay above repo level on Thursday

25 Sep 2014 Evaluate

Interbank call rates were trading flat at Wednesday's close of 8.00/8.05%, higher than the repo rate of 8%, as demand remained higher in the first half of fresh reporting cycle since banks were shoring up their books to guard against usual quarter-end volatility. The rates could perk up substantially in the coming week since markets will be shut down for three days at the start of October.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 5379 crore through repo auction on September 25, 2014, while the banks via LAF borrowed Rs 5789 crore through repo auction and parked Rs 2937 crore via days reverse repo window on September 24, 2014.

The overnight borrowing rates touched a high and low of 8.05% and 7.90% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.99 % on Thursday and total volume stood at Rs 30844.64 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.98% on Thursday and total volume stood at Rs 39806.50 crore, so far.

The indicative call rates which closed 8.00/8.05% on Thursday 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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