Call rates recede with the end of first week of reporting fortnight

Interbank call rates ebbed for third consecutive session at 8.15/20% in comparison to its previous close of 8.20/25% on Thursday, as demand dwindled, approaching the end of the first week of the reporting fortnight. However, the cash rates could hover above 8.50-8.75% in next week on account of liquidity pressure, which are expected to be under strain after corporate’s start making payments towards quarterly advance taxes.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,03,590 crore through repo window on June 8, 2012, while, the banks via LAF borrowed Rs 86,515 crore through repo window on June 7, 2012.

The overnight borrowing rates has touched a high of 8.06% and a low of 7.95%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.11% on Friday and total volume stood at Rs 19,177.54 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.03% on Friday and total volume stood at Rs 19,621.90 crore, so far.

 The indicative call rates which closed at 8.15/50% 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.