Interbank call rates were trading little changed at 7.60/7.75% from its previous close of 7.65/70% on Monday, as demand remained on the higher side at the start of a new reporting fortnight. Improved liquidity situation mainly capped the upside of call rates. The liquidity situation has improved is underscored by the fact that banks’ borrowing at the central bank’s liquidity adjustment facility window has come down over the last week, from Rs 120,965 crore on April 2 to Rs 28,800 crore on April 5.
Although banks collectively borrowed Rs 109,365 crore on Monday, the liquidity trend is likely to ease as outflows on account of advance tax payment by companies last month is expected to come back into the banking system.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 109,365 crore through repo window and parked Rs 45 crore via reverse repo window on April 08, 2013.
The overnight borrowing rates touched a high and low of 7.65% and 7.50% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.56% on Tuesday and total volume stood at Rs 21,848.38 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.47% on Tuesday and total volume stood at Rs 39,295.45 crore, so far.
The indicative call rates which closed at 7.65/70% 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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