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Call rates remain steady on Tuesday

21 Jun 2011 Evaluate

The Inter-bank call money rates opened at 7.75, steady from its previous close of 7.75/85 on Monday as demand steady in first week of a new reporting fortnight. However, Indian cash rates inched up further to its fresh two and half month high on Monday as demand was strong in the first week of reporting fortnight amid tight liquidity following the advance tax payments’ last week. Liquidity in the banking system has tightened following the corporate’ advance tax payments last week where India’s top 100 firms in the Mumbai tax region paid 14 percent higher advance tax in April-June compared to a year ago.

Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 93,270 crore through repo window on June 21, 2011. While, banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,09,840 crore through repo window and Rs 200 crore via reverse repo window on June 20, 2011.

The overnight borrowing rates has touched a high of 7.75% and a low of 6.40%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.71% on Monday and total volume stood at Rs 18,938 crore on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.43% on Monday and total volume stood at Rs 38,431 crore on the same day.

The indicative call rates which closed at 7.75/85% 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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