Interbank call rates edged lower at 8.20/25% from its previous close of 8.70/8.75% on Wednesday as demand receded, pulling the rates way below than the Emergency funding Rate of 8.75%, indicating bank’s surplus liquidity situation. This momentum is way contrary from trend usually witnessed in first week of reporting cycle, where rates soar as banks prefer to cover for their product cycle needs to avoid any volatility of rates going further in the fortnight.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 40500 crore through repo window on November 7, 2013, while banks using LAF borrowed Rs 30489 crore through repo window and parked Rs 53 crore via reverse repo window on November 06, 2013.
The overnight borrowing rates touched a high and low of 8.30% and 8.00% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.09% on Thursday and total volume stood at Rs 21704.44 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.13% on Thursday and total volume stood at Rs 31025.40 crore, so far.
The indicative call rates which closed at 8.70/75% 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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