Call rates trade flat ahead of reporting fortnight

Interbank call rates were trading flattish around its previous close of 8.05/10%, for second consecutive session, as banks adequately covered ahead of reporting fortnight. 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 banks via Liquidity Adjustment Facility (LAF) borrowed Rs 69,115 crore through repo window on June 13, 2012, while, the banks via LAF borrowed Rs 85,305 crore and parked Rs 15 crore via reverse repo window on June 12, 2012.

The overnight borrowing rates has touched a high of 8.01% and a low of 7.90%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.07% on Wednesday and total volume stood at Rs 23,156.32 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.98% on Wednesday and total volume stood at Rs 25,814.85 crore, so far.

The indicative call rates which closed at 8.05/10% on Tuesday 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.