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Call rates edge higher at the end of first week of reporting cycle

08 Dec 2014 Evaluate

Interbank call rates were trading at 8.05%/8.10%, higher than previous close of 8.00/8.05% and repo rate of 8.00% on Friday as demand remained steady in the second week of reporting cycle as banks usually prefer to borrow for their mandated requirements early in the reporting cycle, to avoid volatility of rates going further.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 11157 crore through a day repo auction on December 08, 2014, while banks via LAF facility borrowed Rs 2201 crore through repo window and parked Rs 2166 crore through reverse repo auction on December 5, 2014.

The overnight borrowing rates touched a high and low of 8.10% and 6.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.01% on Monday and total volume stood at Rs 29852.51 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.02% on Monday and total volume stood at Rs 45148.60 crore, so far.

The indicative call rates which closed at 8.00/8.05% on Friday 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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