Call rates little changed on reporting Friday

Interbank call rates were trading little changed at 8.00/10% from its previous close of 8.00/05%, given the lack of demand from banks on last day of the reporting cycle amid comfortable cash situation, which kept a lid on the surge of the call rates for the entire reporting fortnight. Call rates could edge higher with the start of new reporting cycle, however hopes of continued improvement in cash conditions, given Reserve Bank of India’s assurance of conducting Open Market Operations to rein in the tight liquidity situation, might provide a lid to the ceiling of gains.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 37,470 crore through repo window on August 10, 2012, while, the banks via LAF borrowed Rs 61,535 crore via repo window on August 9, 2012.

The overnight borrowing rates has touched a high of 8.10% and a low of 8.05%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.95% on Friday and total volume stood at Rs 22,669.87 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.78% on Friday and total volume stood at Rs 8,398.90 crore, so far.

The indicative call rates which closed at  8.00/8.05% on Thursday 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.