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Call rates edge lower in second week of reporting cycle

09 Dec 2013 Evaluate

Interbank call rates were trading way lower at 7.65%, from its previous close of 7.75/7.80% on Friday, as banks already had covered for their mandated fortnightly requirements approaching the second week of reporting fortnight. Further, comfortable liquidity situation kept call rates lower, below the Marginal Standing Facility (MSF) rate of 8.75%. 

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 20009 crore through repo window on December 09, 2013, while banks using special LAF borrowed Rs 10469 crore through repo window and parked Rs 2539 crore via reverse repo window on December 06, 2013.

The overnight borrowing rates touched a high and low of 8.25% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.77% on Monday and total volume stood at Rs 15715.85 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.76% on Monday and total volume stood at Rs 35110.60 crore, so far.

The indicative call rates which closed at 7.75/7.80% on Friday 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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