Interbank call rates, the rates at which banks borrow short-term funds from each other, were trading higher at 6.59% from its previous close of 6.44% on Friday on account of good demand from borrowing banks even in second week of reporting cycle amidst tight liquidity in the banking system. The rates are expected to ebb from here on since most of the banks would have fulfilled their mandated requirement in order to avoid the volatility call rates going further.
The banks via Liquidity Adjustment Facility (LAF): Fixed Rate Repo Operations borrowed Rs 21468 crore via three days repo window on May 09, 2016, while they borrowed Rs 5399 crore via repo window and parked Rs 2523 crore via reverse repo window on May 06, 2016.
The overnight borrowing rates touched a high and low of 6.85% and 5.50% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 6.51% on Monday and total volume stood at Rs 41737.19 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 6.59% on Monday and total volume stood at Rs 73164.75 crore, so far.
The indicative call rates which closed 6.44% on Friday, 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.
