Call rates trade flat around its previous close

Interbank call rates were trading flat around its previous close of 8.10/15%, as demand steadied approaching the second week of the reporting cycle. Signs of improved inter-bank liquidity conditions, in absence of a bond auction this week and the RBI's surprise announcement that it will purchase bonds via open market operations were also helping keep liquidity deficit under check. The call rates had ended at 8.10/20% in illiquid markets on Saturday. However, the liquidity deficit, which is seen tightening next week with corporate’s making payments towards quarterly advance taxes, may push call rates higher above the 8.50% level.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 85,305 crore through repo window on June 12, 2012, while, the banks via LAF borrowed Rs 88,685 crore and parked Rs 20 crore via reverse repo window on June 11, 2012.

The overnight borrowing rates has touched a high of 8.02% and a low of 7.92%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.09% on Tuesday and total volume stood at Rs 19,770.95 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Tuesday and total volume stood at Rs 25,597.80 crore, so far.

The indicative call rates which closed at 8.10/15% on  Monday 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.