Interbank call rates edged higher at 10.25/30% compared to previous close of 10.20/30% on Wednesday, as demand more or less stabilized in the first week of reporting cycle. However, tight liquidity condition is maintaining pressure on call rates, with banks borrowing Rs 69585 crore from the Reserve Bank of India's marginal standing facility (MSF) window on August 28, higher than the Rs 56435 crore on August 27. It needs to be noted that the RBI had raised the MSF rate by 200 basis points to 10.25% and also imposed restrictions on daily borrowings by banks under its repo window last month.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 39984 crore through repo window on August 29, 2013, while banks via Special Liquidity Adjustment Facility borrowed Rs 39074 crore through repo window and parked Rs 18 crore via reverse repo window on August 28, 2013.
The overnight borrowing rates touched a high and low of 10.50% and 10.25% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 10.23% on Thursday and total volume stood at 16515.96 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 10.25% on Thursday and total volume stood at Rs 43797.50 crore, so far.
The indicative call rates which closed at 10.20/10.30% 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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