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Call rates continue to trade higher on Tuesday

07 Feb 2012 Evaluate

Interbank call rates opened at 8.75/8.85%, higher than Monday's close of 8.60/8.65%, as some banks continued to borrow in the second week of a two-week reporting period on uncertainty over the central bank’s ongoing liquidity infusing measures through debt purchases. However, cash rates are unlikely to climb much higher from current levels this week as most banks have already covered their positions last week.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 91,130 crore through repo window on February 7, 2012. Meanwhile, the banks via LAF borrowed Rs 98,760 crore through repo window on February 6, 2012.

The overnight borrowing rates has touched a high of 8.65% and a low of 8.00%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.61 % on Monday and total volume stood at Rs 15422.24, as on same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.45% on Monday and total volume stood at Rs 42644.75 crore, as on same day.

The indicative call rates which closed at 8.60/65% 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank

 

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