Call rates edge higher with the end of first week of reporting cycle

Interbank call rates edged higher at 8.30/8.35% from its previous close of 8.20/8.30% in wake of hopes of improved liquidity condition, as banks scurried to meet mandated fortnightly requirements with the end of the first week of reporting cycle.

Repo borrowing continued to remain sharply higher than the RBI's liquidity deficit comfort zone of around Rs 65,000 crore. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,18,730 crore through repo window on May 11, 2012 while, the banks via LAF borrowed Rs 1,25,065 crore through repo window and parked Rs 5 crore via reverse repo window on May 10, 2012.

Meanwhile, volume in the call money market was Rs 22,276 crore, compared with Rs 25,946 crore on Wednesday, while the weighted average rate was 8.34% versus 8.36% previously.

The overnight borrowing rates has touched a high of 8.20% and a low of 7.50%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.13% on Friday and total volume stood at Rs 11,315.16 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.13% on Friday and total volume stood at Rs 19,664.55 crore, so far.

The indicative call rates which closed at 8.20/30% on Thursday 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.