Call rates continue to recede on Wednesday

Interbank call rates were trading lower at 7.95/8% as compared to its previous close of 8.00/8.05% as demand usually eases entering the second week of the reporting cycle. The call rates are expected to dwindle going further as lower bank credit-deposit ratio and month-end government spending would further ease liquidity conditions.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 33,920 crore through repo window on July 25, 2012, while, the banks via LAF borrowed Rs 24,010 crore via repo window on July 24, 2012.

The overnight borrowing rates has touched a high of 8.10% 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 7.98% on Wednesday and total volume stood at Rs 16,866.83 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.95% on Wednesday and total volume stood at Rs 37,544.85 crore, so far.

The indicative call rates which closed at  8.00/05% 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.