Call rates trade higher on Thursday

Interbank call rates were trading at 8.00/05% higher from its previous close of 7.00/10% on Wednesday. However, Indian cash rates ended lower on Wednesday at 7.00/10% as demand for the fund declined as lenders draw funds from the central bank’s export credit refinance facility. The RBI in its policy review last month increased the export credit refinance limit for banks to 50 percent from 15 percent, saying it had the potential to release around Rs 30,000 crore into the banking system. The increase was effective June 30.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 14,660 crore through repo window on July 5, 2012, while, the banks via LAF borrowed Rs 48,365 crore via repo window and parked Rs 890 crore via reverse repo window on June 4, 2012.

The overnight borrowing rates has touched a high of 8.00% 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 7.97% on Thursday and total volume stood at Rs 17,107.99 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.95% on Thursday and total volume stood at Rs 46,510.40 crore, so far.

The indicative call rates which closed at 7.00/7.10% 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.