Call rates edge lower on receding demand in second week of reporting fortnight

Interbank call money rates were trading at 8.55/8.65%, little changed from Monday's close of 8.60/65% as demand was low in the second week of the reporting fortnight. Demand is typically higher in the first week of the reporting fortnight as banks try to cover most of their mandated reserve needs early on to avoid a last-minute scramble.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1, 06,190 crore through repo window on November 15, 2011. Meanwhile, banks via LAF borrowed Rs 91,635 crore through repo window on November 14, 2011.

The overnight borrowing rates has touched a high of 8.60% and a low of 8.00%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.52% on Monday and total volume stood at Rs 13,686.43 crore.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.49% on Monday and total volume stood at Rs 4,4984.40 crore.

The indicative call rates which closed at 8.60/65% 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.