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Cash rates little changed on Wednesday

30 Nov 2011 Evaluate

Interbank call money rates were trading at 8.55/60%, little changed from Tuesday's close of 8.50/60%, as demand remained stable in the second week of the reporting fortnight. However, cash rates could edge a little lower going further as some traders expect month-end spending from the government for salaries and subsidies to flow in soon and improve liquidity in the banking system, thereby easing the pressure on rates.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 77,850 crore through repo window on November 30, 2011. While, banks using LAF borrowed Rs 93,395 crore through repo window  and parked Rs 20 crore via reverse repo on November 29, 2011.

The overnight borrowing rates has touched a high of 8.60% and a low of 7.50%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.50% on Tuesday and total volume stood at Rs 15,714.27 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.50% on Tuesday and total volume stood at Rs 36,596.70 crore, so far.

The indicative call rates which closed at 8.50/60% on Tuesday 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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