Interbank call rates were at 8.85/8.90% from Tuesday's close of 9.10/9.15%, as demand for funds inched lower in the 2nd week of the fortnightly reporting cycle. The overnight cash rate hovered near 9 percent on Tuesday as liquidity deficit in the banking system touched a record high and banks scrambled for funds to meet requirement. However, cash rates are again expected to soar beyond 9% in mid-March, when corporate’s make advance tax payments.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 179,720 crore through repo window on February 29, 2012. Meanwhile, the banks via LAF borrowed Rs 180,645 crore through repo window on February 28, 2012.
The overnight borrowing rates has touched a high of 8.85% 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 8.78% on Tuesday and total volume stood at Rs 12,411.16, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.60% on Tuesday and total volume stood at Rs 35,264.60 crore, so far.
The indicative call rates which closed at 8.85/9.00% on Tuesday 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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