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Call rates little changed from previous close on muted demand

03 Sep 2013 Evaluate

Interbank call rates were trading at 10.25/30% compared to its previous close of 10.20/25% on Monday as demand remained more or less the same at the start of the second half of reporting cycle. However, less drained liquidity condition could put off the pressure on call rates going further, given that Reserve Bank of India (RBI) has cut the auction size for Friday by Rs 5,000 crore. India’s Apex Bank will auction two bonds instead of four bonds planned earlier in the issuance calendar for marketable dated securities released in March.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 39339 crore through repo window on September 03, 2013, while banks LAF borrowed Rs 39934 crore through repo window and parked Rs 104 crore via reverse repo window on September 02, 2013.

The overnight borrowing rates touched a high and low of 10.35% and 10.15% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 10.22% on Tuesday and total volume stood at 23007.94 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 10.21% on Tuesday and total volume stood at Rs 57256.95 crore, so far.

The indicative call rates which closed at 10.20/10.25% on Monday 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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