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Call rates edge higher in second week of reporting cycle

15 Apr 2013 Evaluate

Interbank call rates edged higher at 7.50/60% from its previous close of 7.40/50% on Friday, as demand edged higher at the start of second week of reporting cycle, given that liquidity conditions continue to remain tight. It ended at 7.25/30% in an illiquid market on Saturday.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 59,675 crore through repo window on April 15, while banks borrowed Rs 82,900 crore via 3 days repo window and parked Rs 2,370 crore via reverse repo window on April 12, 2013.

The overnight borrowing rates touched a high and low of 7.65% and 7.35% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.53% on Monday and total volume stood at Rs 23,391.66 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.45% on Monday and total volume stood at Rs 66,611.60 crore, so far.

The indicative call rates which closed at 7.25/30% on Saturday 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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