Call rates trade little changed on steady demand

Interbank call rates were little changed at 8.00/8.05% from its previous close of 8.05/10% as demand stayed largely steady at the start of a fresh two-week reporting cycle. 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 51,390 crore through repo window on September 11, 2012, while, the banks borrowed Rs 43,250 crore through repo window on September 10, 2012.

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 Tuesday  and total volume stood at Rs 20,207.26 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.97% on Tuesday and total volume stood at Rs 42,179.25 crore, so far.

The indicative call rates which closed at 8.05/10% on Monday 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.