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Call rates edge higher on good demand from borrowing banks

26 Mar 2015 Evaluate

Interbank call rates were trading higher at 7.50/7.55% against Wednesday’s close of 6.90/6.95% as good demand was witnessed by borrowing banks. The rates are expected to remain at these levels as banks usually borrow for their fortnightly requirements in the first week of reporting cycle in order to avoid the volatility of rates going further.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 5087 crore through repo auction on March 26, 2015, while banks via LAF facility borrowed Rs 3617 crore through repo window and parked Rs 10140 crore through reverse repo auction on March 25, 2015.

The overnight borrowing rates touched a high and low of 7.55% and 6.90% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.42% on Thursday and total volume stood at Rs 24519.50 crore, so far.  

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.45% in Thursday and total volume stood at Rs 50312.90 crore, so far.

The indicative call rates which closed at 6.90/6.95% 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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