Call rates cool down to repo level on penultimate session of reporting fortnight

Interbank call rates were trading lower at 8.45/8.50% against its Tuesday's close of 8.95/9.00%, in line with repo level as demand ebbed approaching closer to the end of reporting fortnight. However, the rates may pick up on Friday on account of some last minute demand from banks, who scramble to fulfill their fortnightly requirements. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 21307 crore through repo auction on May 13, 2014 and parked Rs 332 crore on May 13. It borrowed Rs 21523 crore via repo window and parked Rs 2074 crore via reverse repo window on May 12, 2014. The overnight borrowing rates touched a high and low of 8.50% and 8.25% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.47% on Thursday and total volume stood at Rs 27949.41 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.40% on Thursday and total volume stood at Rs 26770.05 crore, so far. The indicative call rates which closed 8.95/9.00% on Tuesday 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.