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Call rates hovers above repo level on Tuesday

23 Apr 2013 Evaluate

Interbank call rates were little changed at 7.55/60% from its previous close of 7.50/60% on Monday. Cash rates, however, were trading a little above the repo level, as demand picked up in the holiday truncated week, given that most of banks usually prefer to cover in first week of reporting cycle, in order to avoid the volatility of cash rates in the second week. Markets will remain closed for trade tomorrow on account of ‘Mahavir Jayanti’.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 92815 crore through repo window on April 22, while banks borrowed Rs 79745 crore via repo window and parked Rs 70 crore via  reverse repo window on April 22, 2013.

The overnight borrowing rates touched a high and low of 7.70% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.57% on Monday and total volume stood at Rs 31566.77 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.48% on Monday and total volume stood at Rs 44749.50 crore, so far.

The indicative call rates which closed at 7.50/60% 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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