Interbank two day call rates remained unchanged from its previous close of 10.25/35%, as demand continued to remain strong in the first week of the two week reporting cycle. Call rates continue to stay close to the RBI's emergency funding rate of 10.25% after the third round of cash tightening measures announced last week. However, the rates are expected to not surge beyond this level as banks are allowed to use up to 2% of their mandated bond holdings as collateral to borrow under this emergency window
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 38836 crore through repo window on August 14, 2013, while banks, borrowed Rs 38631 crore through repo window and pared Rs 24 crore via reverse repo window on August 13, 2013.
The overnight borrowing rates touched a high and low of 10.50% and 10.30% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 10.18% on Wednesday and total volume stood at 13252.81 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 10.25% on Wednesday and total volume stood at Rs 35840.50 crore, so far.
The indicative call rates which closed at 10.25/10.30% 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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