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Call rates sprint up on higher demand on Friday

28 Feb 2014 Evaluate

Interbank call rates were trading higher at 8.05/8.10% against its previous close of 7.90/8.00% on Friday as demand gained momentum with the end of first half of reporting cycle. Further, with the Money markets remaining shut for trade on Thursday on account of Mahashivratri, the accumulated demand from bank to fulfill their fortnightly requirements ahead of the start of second week of reporting cycle also pushed the rates higher.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 29057 crore through repo auction and parked Rs 3075 crore on February 26, 2014.

The overnight borrowing rates touched a high and low of 8.15% and 7.95% respectively. .

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in thecall money market was 7.93% on Friday and total volume stood at Rs 21553.37 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.96% on Friday and total volume stood at Rs 34816.75 crore, so far.

The indicative call rates which closed 7.90/8.00% 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.

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