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Call rates creep higher on Tuesday

18 Feb 2014 Evaluate

Interbank call rates were trading higher at 8.20/8.25% against previous close of 7.00/7.10% as demand dipped substantially lower in previous trading session, which marked the start of second half of reporting cycle. However, any uptick in rates is unlikely going further in the week as most banks prefer to borrow for their fortnightly requirements during the first week of reporting cycle, though last minute demand cannot be ruled out.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 33704 crore through repo auction and on February 18, 2014. In the previous session, banks using LAF facility borrowed Rs 38307 crore through repo auction and parked Rs 2842 crore via reverse repo window on February 17, 2014.

The overnight borrowing rates touched a high and low of 8.25% and 8.00% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.13% on Tuesday and total volume stood at Rs 17485.13 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.07% on Tuesday and total volume stood at Rs 32778.45 crore, so far.

The indicative call rates which closed at 7.00/7.10% 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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