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Call rates steady above repo level on firm demand

26 Feb 2013 Evaluate

Interbank call rates were trading steady at its previous close of 7.85/90% with demand remaining firm at the start of a new reserves reporting week. Further, banks' borrowing from the central bank has hovered at more than Rs 1 trillion for most of the month, showing the continued extent of the liquidity tightness in the banking system.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 115,290 crore through repo window on February 26, 2013, while banks using special LAF facility borrowed Rs 128,425 crore through repo window and parked Rs 25 crore via reverse repo window on February 25, 2013.

The overnight borrowing rates touched a high and low of 7.90% and 7.75% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.88% on Tuesday and total volume stood at Rs 24,568.15 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Tuesday and total volume stood at Rs 23,252.55 crore, so far.

The indicative call rates which closed at 7.85/90% on Monday 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, so far.

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