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Call rates hover near five-and-a-half month high level on Monday

31 Dec 2012 Evaluate

Interbank three day call rates were trading higher at 8.20/25% against its previous close of 7.90/7.95% on Friday, at the start of the new reporting fortnight. Call rates were hovering near five-and-a-half month high level on account of quarter end demand which is combined with the fortnightly requirements.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 156,545 crore via repo window on December 31, 2012. The banks via LAF borrowed Rs 79,850 crore via repo window, while the bank using the second LAF facility borrowed Rs 61,430 crore via repo window and parked Rs 2,245 crore via reverse repo on December 28, 2012.

The overnight borrowing rates touched a high and low of 8.30% and 7.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.21% on Monday and total volume stood at Rs 17,787.19 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.19% on Monday and total volume stood at Rs 9,128.75 crore, so far.

The indicative call rates which closed at 7.90/95% on Friday 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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