Call rates unchanged from previous close

Interbank call rates were trading unchanged at its previous close of 8.05/8.10% on Tuesday, as most of the bank already borrowed more to set aside mandatory reserves, in order to avoid the volatility of call rates in second week of reporting cycle. However, cash deficit, which also remained manageable as month-end government spending kicked in, prevented an uptick in call rates.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 78,185 crore through repo window on October 16, 2012, while, the banks borrowed Rs 70,110 crore through repo window and parked Rs 20 crore on October 15, 2012.

The overnight borrowing rates touched a high and low of 8.10% 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 19,674.92 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Tuesday and total volume stood at Rs 29,215.50 crore, so far.

The indicative call rates which closed at 8.05/8.10% 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.