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Call rates steady at previous closing level on Wednesday

16 Jan 2013 Evaluate

Interbank call rates were trading steady at its previous close of 8.05/10% on Tuesday, as demand remained stable in the first week of the reporting fortnight. Further, traders are expecting cash rates to remain around 8 per cent in the near-term as the central bank is expected to buy bonds via open market operations if liquidity tightened considerably, like it has done in the recent past.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 84,220 crore through repo window on January 16, 2013, while by using LAF facility borrowed Rs 84,120 crore via repo window and parked Rs 65 crore via reverse repo window on January 15, 2013.

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 8.00% on Wednesday and total volume stood at Rs 19,392.03 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.99% on Wednesday and total volume stood at Rs 31,252.95 crore, so far.

The indicative call rates which closed at 8.05/8.10% on Tuesday 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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