Interbank call rates were trading higher at 8.05/8.10% versus its previous close of 7.90/8.00% on account of higher demand towards the end of the first week of the reporting fortnight. Further, tight liquidity condition that could be gauged from bank’s borrowing also edged towards Rs 80,000 crore mark, on account of quarter end demand. However, liquidity may start improving in the first week of October as government starts spending money towards month-end, adding to cash in October.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 85,440 crore through repo window on September 28, 2012, while, the banks borrowed Rs 60,270 crore through repo window and parked Rs 300 crore on September 27, 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 8.05% on Friday and total volume stood at Rs 18,359.51 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.01% on Friday and total volume stood at Rs 41,533.75 crore, so far.
The indicative call rates which closed at 7.80/8.00% 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.
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