Call rates nudge higher on Thursday

Interbank call rates were trading at 8.15/20%, up from its previous close of 8.10/15% as banking system continued to face a liquidity tightness following outflows towards corporate advance taxes last week. Higher demand for funds in the first week of the reporting cycle also shored up the call rates, despite the RBI’s announcement to conduct Open Market Operations by purchasing government securities for an aggregate amount of Rs 12,000 crore on June 22, 2012.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1,12,285 crore through repo window on June 21, 2012, while, the banks via LAF borrowed Rs 1,25,340 crore on June 20, 2012 and parked Rs 55 crore via reverse repo window on June 20, 2012.

The overnight borrowing rates has touched a high of 8.02% and a low of 7.98%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.03% on Thursday and total volume stood at Rs 10,381.71 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Thursday and total volume stood at Rs 3,1909.20 crore, so far.

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