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Call rates little changed on receding demand; stay above repo level

17 Jan 2013 Evaluate

Interbank call rates were trading little changed at 8.05/8.10% from previous close of 8.10/8.20% on Wednesday, as demand started receding in the first week of the reporting fortnight. Further, traders expect cash rates to remain around 8 per cent in the near-term as the central bank buyback bond 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 93,690 crore through repo window on January 17, 2013, while by using LAF facility borrowed Rs 84,220 crore via repo window and parked Rs 5 crore via reverse repo window on January 16, 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 Thursday and total volume stood at Rs 17,172.83 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.98% on Thursday and total volume stood at Rs 30,354.30 crore, so far.

The indicative call rates which closed at 8.10/8.20% on Wednesday 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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