Call rates creep up with the start of reporting fortnight

Interbank call rates were trading higher at 8.30/8.35% against its Friday's close of 7.50/7.55%, in line with repo rates as demand picked up pace with the start of fresh reporting cycle. The rates are expected to remain in this range as demand usually remains higher in the first half of reporting fortnight. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 20161 crore through repo auction on May 19, 2014, while it borrowed Rs 3883 crore through three days repo auction and parked Rs 13293 crore on May 16 via three days reverse repo auction. The overnight borrowing rates touched a high and low of 8.40% and 8.05% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.28% on Monday and total volume stood at Rs 25386.18 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.21% on Monday and total volume stood at Rs 18908.70 crore, so far. The indicative call rates which closed 7.50/7.55% 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.