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Call rates oscillate above repo rate of 8% on Tuesday

25 Nov 2014 Evaluate

Interbank call rates were trading lower at 8.10/8.15% against Monday’s close of 8.50/8.60%, but higher than repo rate of 8%, as demand remained somewhat on the higher side even in the second week of reporting cycle amidst tight liquidity in the banking system.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 17705 crore through repo auction on November 25, 2014, while banks via LAF facility borrowed Rs 10606 crore through repo window and parked Rs 2312 crore through reverse repo auction on November 24, 2014.

The overnight borrowing rates touched a high and low of 8.30% and 6.70% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.09% on Tuesday and total volume stood at Rs 32059.20 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.06% on Tuesday and total volume stood at Rs 74461.30 crore, so far.

The indicative call rates which closed 8.50%/8.15% 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.

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