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Call rates little changed from previous close; way lower than MSF rates

05 Dec 2013 Evaluate

Interbank call rates were trading way lower than Marginal Standing Facility Rate (MSF) of 8.75%, at 7.15/7.20%, little changed from its previous close of 7.10/7.20% on Wednesday, as banks were having enough liquidity to fulfill their fortnightly requirements. The comfortable liquidity condition of banks may also be reflected by the amount borrowed by banks using RBI’s repo window.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 874 crore through repo window and parked Rs 1026 crore via reverse repo window on December 04, 2013, while banks using special LAF borrowed Rs 2927 crore through repo window and parked Rs 10859 crore via reverse repo window on December 03, 2013.

The overnight borrowing rates touched a high and low of 7.25% and 6.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.00% on Thursday and total volume stood at Rs 18529.04 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.06% on Thursday and total volume stood at Rs 51371.80 crore, so far.

The indicative call rates which closed at 7.10/7.20% 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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