Call rates edge marginally higher on Monday

Interbank call rates were at 8.25/8.30 percent, marginally higher from Friday’s close of 8.20/8.25 percent at the start of a new reporting fortnight. However, India’s inter-bank call rate closed at 8.20/8.25 percent on Friday, slightly higher than Thursday’s close of 8.15/20, as most banks had already covered their mandated requirements ahead of reserve reporting day. Liquidity will be the key in coming days, as market-men is concerned that cash will tighten further if the Reserve Bank of India (RBI) continues to intervene in the foreign exchange markets by selling dollars.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,03,520 crore through repo window on May 21, 2012 while, the banks via LAF borrowed Rs 42,740 crore through repo window and parked Rs 15 crore via reverse repo window on May 18, 2012.

The overnight borrowing rates has touched a high of 8.15% 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 8.12% on Monday and total volume stood at Rs 16,440.26 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.06% on Monday and total volume stood at Rs 16,247.70 crore, so far.

The indicative call rates which closed at 8.20/25% on Saturday 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.