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Call rates largely steady on Friday; demand expected in later half of session

09 Nov 2012 Evaluate

Interbank call rates were trading unchanged from its previous close of 8.05/10% on Thursday. However, the demand is likely to pick up later in the session as investors are expected to borrow for the mandated reserve needs in the first week of the reporting fortnight to avoid a scramble in the holiday-shortened second week. Money markets will be closed on Nov 13 and 14 for local holidays.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 87,460 crore through repo window on November 09, 2012, while, the banks using LAF facility borrowed Rs 79,620 crore via repo window on November 08, 2012.

The overnight borrowing rates touched a high and low of 8.10% and 8.05% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.99% on Friday and total volume stood at Rs 15,057.66 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Friday and total volume stood at Rs 24,833.90 crore, so far.

The indicative call rates which closed at 8.10/8.15% 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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