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Call rates little changed amidst accommodative liquidity condition

19 Jun 2013 Evaluate

Interbank call rates were trading little changed at 7.25/30% from its previous close of 7.20/30% on account of accommodative liquidity condition given the start of government spending, a weaker rupee and smooth absorption of advance tax outflows. However, the rates are expected to gyrate in this range as borrowing from banks in the overnight market remains firm, at the beginning of the reporting fortnight.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 60340 crore through repo window on June 19, 2013, while bank’s using LAF facility borrowed Rs 66845 crore via repo window and parked Rs 105 crore via reverse repo window on June 18, 2013.

The overnight borrowing rates touched a high and low of 7.35% and 7.20% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.20% on Wednesday and total volume stood at Rs 26823.97 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.20% on Wednesday and total volume stood at Rs 53540.15 crore, so far.

The indicative call rates which closed at 7.20/30% on Tuesday 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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