Interbank call rates were trading unchanged from its previous close of 8.05/10%, as demand remained steady around the repo level despite approaching the fag end of the reporting fortnight, as deficit liquidity condition of banks on account of advance corporate tax outflows and festival-related currency demand, weighed on the overnight call rates. However, RBI’s rate cut of CRR by 25 bps effective from Sept 22, which would add Rs 17,000 crore of liquidity in the banking system, could ease off some cash-tightness, thereby sending the cash rates lower than the repo level of 8%.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 85,295 crore through repo window and parked Rs 605 crore via reverse repo window on September 20, 2012. Meanwhile, the banks borrowed Rs 68,125 crore through repo window and parked Rs 5 crore via reverse repo window on September 18, 2012.
The overnight borrowing rates touched a high and low of 8.10% and 8.00% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.97% on Friday and total volume stood at Rs 23,905.13 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.74% on Friday and total volume stood at Rs 9,596.70 crore, so far.
The indicative call rates which closed at 8.05/8.10% on Thursday 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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