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Call rates gyrate above repo level on Thursday

18 Jul 2013 Evaluate

Interbank call rates edged higher above the repo level, at 7.55/65% from its Wednesday's close of 7.40/50% on second day of RBI cap on banks' borrowing at Rs 75,000 crore. Banks are still sufficiently covered for their fortnightly product needs. Besides, while some mutual funds may be facing redemption pressures, some may be still lending in CBLO.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 97265 crore through repo window on July 18, 2013, while banks borrowed Rs 141970 crore through repo window and parked Rs 20 crore via reverse repo window on July 17, 2013.

The overnight borrowing rates touched a high and low of 8.00% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.27% on Thursday and total volume stood at 15429.63 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.28% on Thursday and total volume stood at Rs 50375.50 crore, so far.

The indicative call rates which closed at 7.40/7.50% 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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