Interbank call rates escalated to 8.95/9.00% from its previous close of 8.15/20% on Wednesday as demand picked up momentum after banks scrambled to cover their fortnightly requirements. The rates cooled off substantially after Reserve Bank of India in its first bi-monthly monetary policy kept rates on hold while further tightening bank's access to cheap overnight funds.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 17004 crore through repo auction on April 3, 2014. The banks via LAF borrowed Rs 21292 crore through repo auction and parked Rs 6112 crore via reverse repo window on April 02, 2014.
The overnight borrowing rates touched a high and low of 9.00% and 8.60% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.87% on Thursday and total volume stood at Rs 19607.25 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.69% on Thursday and total volume stood at Rs 29581.15 crore, so far.
The indicative call rates which closed 8.15/20% 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.
