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Call rates remain higher on good demand from borrowing banks

12 Mar 2015 Evaluate

Interbank call rates were trading higher at 7.50/7.60% against Wednesday’s close of 7.20/7.30%, but in line with new repo rate as demand remained strong at the start of fresh reporting cycle amidst tight liquidity situation. The rates are expected to remain around these levels as banks usually prefer to borrow for their requirements in the first week of reporting cycle.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 17328 crore through repo auction on March 12, 2015, while banks via LAF facility borrowed Rs 19333 crore through repo window and parked Rs 2967 crore through reverse repo auction on March 11, 2015.

The overnight borrowing rates touched a high and low of 7.55% and 7.25% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.64% on Thursday and total volume stood at Rs 25189.34 crore, so far.  

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.63% in Thursday and total volume stood at Rs 51962.85 crore, so far.

The indicative call rates which closed at 7.20/7.30% 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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