Call rates exhibit steady trade on Thursday

Interbank call rates opened flat from Wednesday’s close of 8.30/8.40%, as the rush for funds seen at the start of a new two-week reporting cycle waned on expectations for improved liquidity next week on open market operation-related inflows. Moreover, the India’s inter-bank call rate was stuck on Wednesday near its previous close of 8.30/8.35 percent, as fund requirements for banks remained elevated in the first week of the reporting cycle. Liquidity conditions are seen improving on expected inflows of up to $2.27 billion early next week after the central bank conducts open market operations on Friday.  

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 125,065 crore through repo window on May 10, 2012 while, the banks via LAF borrowed Rs 117,925 crore through repo window on May 9, 2012.

The overnight borrowing rates has touched a high of 8.25% and a low of 7.75%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.19% on Thursday and total volume stood at Rs 11,936.75 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.18% on Thursday and total volume stood at Rs 19,478.00 crore, so far.

The indicative call rates which closed at 8.30/35% 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 Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.