Interbank call rates, the rates at which banks borrow short-term funds from each other, were trading higher 7.20% from its previous close of 7.12% on Monday as demand continued to remain strong in the first week of the two week reporting cycle. Besides, tight cash situation may continue to add to the pressure on overnight cash rates.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 2096 crore via three days repo window on July 28, 2015, while they borrowed Rs 2011 crore via repo window and parked Rs 1376 crore via reverse repo window on July 27, 2015.
The overnight borrowing rates touched a high and low of 7.20% and 6.75% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 7.16% on Tuesday and total volume stood at 25047.80 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.17% on Tuesday and total volume stood at Rs 41510.00 crore, so far.
The indicative call rates which closed at 7.12% 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.
