Call rates edge higher to repo level with the start of new reporting fortnight

Interbank call rates edged higher at 8.00/05% from its previous close of 7.50/55% on Friday, as demand usually edges higher at the start of the new reporting fortnight. However, cash rates are expected to stay close to the 8% mark in the new fortnight before rising marginally towards 8.25% during the advance tax outflows. Estimates for advance tax outflows are pegged between Rs 50,000-60,000 crore for the second quarter.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 43,250 crore through repo window on September 10, 2012, while, the banks borrowed Rs 12,875 crore through repo window on September 7, 2012. While, banks via Special LAF borrowed Rs 5,445 crore through repo window and parked Rs 26,275 crore via reverse repo window on the similar day.

The overnight borrowing rates touched a high and low of 8.05% and 7.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.99% on Monday  and total volume stood at Rs 12,556.94 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.97% on Monday and total volume stood at Rs 36,039.45 crore, so far.

The indicative call rates which closed at 7.50/55% on Friday 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.