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Call rates edge lower from previous close; yet higher than repo level

06 Jan 2015 Evaluate

Interbank call rates were trading lower at 8.20%/8.30% from its previous close of 8.95%/9.00% on Monday, but higher than repo level of 8% as demand remained on higher side even in the second week of reporting cycle. However, the rates are expected to ebb hereon since most of the banks would have already fulfilled their mandated fortnightly requirements.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 16336 crore through repo auction on January 06, 2015, while banks via LAF facility borrowed Rs 3943 crore through repo window and parked Rs 1996 crore through reverse repo auction on January 05, 2015.

The overnight borrowing rates touched a high and low of 8.50% and 7.00% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.18% on Tuesday and total volume stood at Rs 26380.17 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.12% on Tuesday and total volume stood at Rs 68849.05 crore, so far.  

The indicative call rates which closed at 8.95/9.00% 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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