Call rates edge higher on demand; yet stay below the repo level

Interbank call rates were trading higher at 8.00/8.05% versus its Monday's close of 7.20/7.30%, as demand remained higher at the start of fresh reporting cycle. Nevertheless, comfortable liquidity condition of banking system, which is reflected by the amount they have parked via reverse repo window, kept the call rates below the repo level. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 14480 crore through repo auction on May 20, 2014, while it borrowed Rs 20161 crore through three days repo auction and parked Rs 8245 crore on May 19 via three days reverse repo auction. The overnight borrowing rates touched a high and low of 8.15% and 7.95% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.06% on Tuesday and total volume stood at Rs 23063.08 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.02% on Tuesday and total volume stood at Rs 28400.00 crore, so far. The indicative call rates which closed 7.20/7.30% 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, so far.