Interbank call rates, although were trading higher at 7.80/7.85% against its previous close of 6.85/6.90% on Wednesday, but were lower than Marginal Standing Facility (MSF) rates, on account of eased liquidity conditions, which also can be gauged with the amount that banks parked with RBI via reverse repo window on January 22.
Reserve Bank of India (RBI) bought back Rs 9,477 crore worth of bonds through its so-called open market operations in auction conducted on Wednesday. It received bids worth Rs 22,610 crore in the auction for the bonds maturing in the next three to 13 years.
In order to address the temporary liquidity deficit situation, the Reserve Bank had decided to conduct Open Market Operations (OMO’s) by purchasing the following government securities for an aggregate amount of Rs 10,000 crore on January 22, 2014 through multi-security auction using the multiple price method.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 24984 crore through repo window on January 23, 2014, while banks using LAF facility borrowed Rs 40451 crore through repo window and parked Rs 4422 crore via reverse repo window on January 22, 2014.
The overnight borrowing rates touched a high and low of 7.90% and 7.75% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.83% on Thursday and total volume stood at Rs 24787.49 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.77% on Thursday and total volume stood at Rs 25768.95 crore, so far.
The indicative call rates which closed 6.85/6.90% 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
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: