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Call rates hover above repo level for third consecutive session

09 May 2013 Evaluate

Interbank call rates were trading bit higher at 7.30/35% from its previous close of 7.25/35% on Wednesday, on account of steady demand as liquidity continued to remain in deficit mode. However, Reserve Bank of India Governor Duvvuri Subbarao has said the central bank would consider all options to provide liquidity, and not just open market operations.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 104,940 crore through repo window on May 9, 2013, while bank’s using LAF facility borrowed Rs 103,610 crore via repo window and parked Rs 15 crore via reverse repo window on May 08, 2013.

The overnight borrowing rates touched a high and low of 7.35% and 7.25% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.31% on Thursday and total volume stood at Rs 27,013.34 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.26% on Thursday and total volume stood at Rs 31,917.25 crore, so far.

The indicative call rates which closed at 7.25/30% 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, so far.

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