Call rates edge lower on Reporting Friday

Interbank call rates were trading lower at 7.65/ 7.70% versus its previous close of 7.75/80% as most banks over-covered their product needs approaching the end of the reporting cycle. Further, comfortable liquidity, primarily as month-end government spending kicked into the banking system, were also keeping a lid on the surge of the call rates. However, call rates could edge higher with the start of new reporting cycle from Monday.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 11835 crore through repo window on October 5, 2012, while, they borrowed Rs 6850 crore through repo window and parked Rs 930 crore via reverse repo on October 4, 2012.

The overnight borrowing rates touched a high and low of 8.05% and 7.65% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.73% on Friday and total volume stood at Rs 48725.42 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 6.96% on Friday and total volume stood at Rs 12235.45 crore, so far.

The indicative call rates which closed at 7.75/8.00% 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.