Interbank call money rates edged little higher in the second week of reporting fortnight at 8.65/70%, from its previous close of 8.60/65% on stable demand. Rate had closed at 8.60/8.65% on Saturday in an illiquid market. Demand, which usually recedes in the second week of reporting cycle, has remained stable on account of strain in the banking system, which is currently being pressured by heavy government bond supply and banks' need for meeting cash reserve requirements on additional deposit growth.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 89,995 crore through repo window on November 28, 2011. While, banks using LAF borrowed Rs 98,775 crore through repo window and parked Rs 15 crore via reverse repo on November 25, 2011.
The overnight borrowing rates has touched a high of 8.75% and a low of 8.00%, so far.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.56% on Monday and total volume stood at Rs 99,34.53 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.54% on Monday and total volume stood at Rs 20,162.30 crore, so far.
The indicative call rates which closed at 8.60/65% 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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