Call rates hover in vicinity of repo level

Interbank call rates were trading little changed at 8.00/8.05% from its previous close of 8.05/8.10%, as demand remained higher in the first week of the reporting fortnight with two trading holidays during the week adding to the demand. However, since the banks’ are holding excess SLR (statutory liquidity ratio), the pressure on call rates remain lower.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 77,110 crore through repo window on October 23, 2012, while, the banks using LAF facility borrowed Rs 67,400 crore through repo window and on October 22, 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 8.00% on Tuesday and total volume stood at Rs 18,989.31 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 28,240.85 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.