Call rates ebb amidst comfortable liquidity situation

Interbank call rates were trading lower at 8.20/25% versus Wednesday’s close of 8.95/9.05%, as demand somewhat ebbed amidst prevailing comfortable liquidity situation, which brought call rates below the repo level. Nevertheless, the rates are expected to remain around these level for this week, at least as banks usually prefer to cover for their fortnightly requirements in the first half of reporting cycle. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 19618 crore through repo auction on May 08, 2014. It borrowed Rs 11768 crore via repo window and parked Rs 642 crore via reverse repo window on May 7, 2014. The overnight borrowing rates touched a high and low of 8.25% and 8.05% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.14% on Thursday and total volume stood at Rs 24291.74 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.14% on Thursday and total volume stood at Rs 28124.55 crore, so far. The indicative call rates which closed 8.95/9.05% on Wednesday 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.