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Call rates steady around the higher level on Thursday

09 Jun 2011 Evaluate

The Inter-bank call money rates were trading steady at its previous close of 7.40/45% due to stable demand from banks, which are covering their requirements ahead of the likely rate action by the central bank in its mid-quarter policy review on June 16, 2011. Also, demand is typically higher in the first week of a reporting fortnight as banks borrow more to avoid a last-minute scramble for funds.

Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 70,425 crore through repo window on June 09, 2011. While, Banks via Liquidity Adjustment Facility (LAF) borrowed Rs 73,770 crore through repo window and parked Rs 125 crore using the reverse repo window on June 08, 2011.

The overnight borrowing rates has touched a high of 7.45% and a low of 6.20%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.37% on Wednesday and total volume stood at Rs 16,192 crore on the same day.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.25% on Wednesday and total volume stood at Rs 45,477 crore on the same day.

The indicative call rates which closed at 7.40/45% 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.

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