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Call rates edge higher above repo level in second week of reporting cycle

18 Feb 2015 Evaluate

Interbank call rates were trading higher at 8.10%/8.15%, from its Monday’s close of 7.70%/7.75%, and also higher than the repo rate as banks continued to borrow their fortnightly requirements even in the second week of reporting cycle. The rates, however are expected to ebb approaching closer towards the end of reporting cycle since most of banks avoid last minute borrowing.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 20646 crore through repo auction on February 18, 2015, while banks via LAF facility borrowed Rs 18801 crore through three days repo window and parked Rs 2160 crore through three days reverse repo auction on February 16, 2015.

The overnight borrowing rates touched a high and low of 8.10% and 7.70% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.96% on Wednesday and total volume stood at Rs 30429.70 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.95% in Wednesday and total volume stood at Rs 46776.20 crore, so far.

 The indicative call rates which closed at 7.70/7.75% 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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