Interbank call money rates although lowered at 8.70/8.75%, from its previous close of 8.90/95% but is trading well above the central bank's repo rate of 8.50% as demand was firm at the start of a fresh fortnight. Rates had ended at 8.70/75% in an illiquid market on Saturday. Call rates are expected to oscillate in this range as demand is typically higher in the first week of a reporting fortnight as banks cover their position early on to avoid a last minute scramble for funds.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 127,335 crore through repo window on November 21, 2011. Meanwhile, banks via LAF borrowed Rs 106,535 crore through repo window and parked Rs 1,420 crore via reverse repo on November 18, 2011.
The overnight borrowing rates has touched a high of 8.70% and a low of 7.50%, so far.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.62% on Monday and total volume stood at Rs 12,069.71 crore.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.55% on Monday and total volume stood at Rs 20,817.10 crore.
The indicative call rates which closed at 8.70/75% on Saturday 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.
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