Call rates edge higher amidst tight liquidity condition

Interbank call rates were trading higher at 8.25/8.30% versus its Friday’s close of 8.10/8.15%% as demand from banks to fulfill their fortnightly requirements gained momentum amidst tight liquidity condition due to pent up demand from its customer. Banks and Money markets were closed on Monday on account of ‘Baba Saheb Ambedkar Jayanti’. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 19835 crore through repo auction on April 15, 2014. The banks via LAF borrowed Rs 17793crore through repo auction and parked Rs 1935 crore via reverse repo window on April 11, 2014. The overnight borrowing rates touched a high and low of 8.35% and 8.25% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.20% on Tuesday and total volume stood at Rs 30266.93 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.29% on Tuesday and total volume stood at Rs 27239.10 crore, so far. The indicative call rates which closed 8.00/8.15% on Friday 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, so far.