Interbank call rates were trading lower at 8.10/15% in comparison to its previous close of 8.20/25% on Monday, as demand eased after banks borrowed excessively in the previous session. The cash rates are expected to oscillate above the 8% mark on account of liquidity pressure, which are expected to be under strain after corporate’s start making payments towards quarterly advance taxes. However, call rates could hover above 8.50-8.75% next week in absence of central bank’s open market operation’s announcement.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 77,890 crore through repo window on June 5, 2012, while, the banks via LAF borrowed Rs 93,355 crore through repo window and parked Rs 10 crore via reverse repo window on June 4, 2012.
The overnight borrowing rates has touched a high of 8.08% and a low of 7.99%, so far.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.09% on Tuesday and total volume stood at Rs 20,315.53 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.01% on Tuesday and total volume stood at Rs 21,937.85 crore, so far.
The indicative call rates which closed at 8.20/25% 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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