Interbank call money rates were trading unchanged from Monday's close of 8.60/8.65%, as demand remained strong at the start of a new reporting fortnight with bids at the central bank's repo counter climbing above a trillion rupees in the previous session. However, expectations that the Reserve Bank of India will keep buying back government bonds through open market operations (OMO) to improve cash supply in the banking system may provide a lid to the surge of cash rates, going further in the fortnight.
Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank of India (RBI) on Tuesday decided to conduct Open Market Operations (OMO) by purchasing government securities for an aggregate amount of Rs 10,000 crore on December 8, 2011.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 93,370 crore through repo window on December 07, 2011. While, banks using LAF borrowed Rs 100255 crore through repo window and parked Rs 200 crore via reverse repo on December 05, 2011.
The overnight borrowing rates has touched a high of 8.60% and a low of 7.80%, so far.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.56% on Monday and total volume stood at Rs 15726.42, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.50% on Monday and total volume stood at Rs 30615.70 crore, so far.
The indicative call rates which closed at 8.60/65% 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.
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: