Interbank call rates were trading lower at 8.00/8.05% from the previous close of 8.20/8.25% on Friday and Marginal Standing Facility (MSF) rate of 8.75%, on the first day of new reporting cycle due to lack of demand from borrowing banks on back of ample liquidity in the banking system. However, the rates could edge higher in the coming days as banks usually prefer borrowing for their fortnightly requirements in the first week of reporting fortnight to avoid the volatility of rates going further.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 23817 crore through repo auction and on February 24, 2014. In the previous session, banks using LAF facility borrowed Rs 8035 crore through repo auction and parked Rs 3005 crore via reverse repo window on February 21, 2014.
The overnight borrowing rates touched a high and low of 8.10% and 7.90% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.97% on Monday and total volume stood at Rs 24448.23 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.99% on Monday and total volume stood at Rs 40458.85 crore, so far.
The indicative call rates which closed 8.20/25% on Friday 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.
