Interbank call rates were trading in line with MSF rate at 8.70/75%, way higher from its previous close of 7.75/80% on Monday, on account of continued demand from banks amidst tight liquidity conditions as corporate continue to pay the December installment of Advance tax, the last date of which has been extended to December 17.
The banks via special Liquidity Adjustment Facility (LAF) borrowed Rs 37422 crore through repo window on December 17, 2013, while banks using LAF borrowed Rs 38450 crore through repo window and parked Rs 803 crore via reverse repo window on December 16, 2013.
The overnight borrowing rates touched a high and low of 8.80% and 8.50% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.61% on Tuesday and total volume stood at Rs 16545.35 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.64% on Tuesday and total volume stood at Rs 31564.00 crore, so far.
The indicative call rates which closed at 7.75/7.80% on Monday 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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