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Call rates stay higher than repo level in the first week of reporting cycle

29 Jan 2015 Evaluate

Interbank call rates were trading higher at 7.85/7.90% against its previous close of 6.80/6.85% on Wednesday as demand remained higher with the start of fresh reporting cycle. The rates are expected to remain around these levels for this week since most of the banks prefer borrowing early for their fortnightly requirements.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 15900 crore through repo auction on January 29, 2015, while banks via LAF facility borrowed Rs 22491 crore through repo window and parked Rs 6993 crore through four day reverse repo auction on January 28, 2015.

The overnight borrowing rates touched a high and low of 8.00% and 6.75% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.98% on Thursday and total volume stood at Rs 31184.76 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.87% in Thursday and total volume stood at Rs 38936.70 crore, so far. 

The indicative call rates which closed at 7.80%/7.85% on Wednesday 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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