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Call rates continue to hover above repo level in new reserves reporting fortnight

25 Sep 2012 Evaluate

Interbank call rates were trading higher at 8.00/10% from its previous close of 8.00/8.05%, as demand stayed higher at the start of the new reserves reporting fortnight. However, the higher demand which can be gauged from repo borrowing of banks using RBI’s facility, after soaring at Rs 80,000 crore, is expected to fall from Tuesday and slip to Rs 10,000-15,000 crore deficit by the first week of October.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 79,760 crore through repo window on September 25, 2012. Meanwhile, the banks borrowed Rs 80,130 crore through repo window on September 24, 2012.

The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.01% on Tuesday and total volume stood at Rs 15,983.58 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.99% on Tuesday and total volume stood at Rs 15,983.58 crore, so far.

The indicative call rates which closed at 8.00/8.05% 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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