Call rates edge lower on receding demand

Interbank call rates were trading lower at 8.60/65% versus Friday’s close of 8.70/8.75%, as demand ebbed amidst prevailing comfortable liquidity situation. However, the rates are expected to come down below the repo level as demand usually recedes approaching the second week of reporting fortnight. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 21523 crore through repo auction on May 12, 2014. It borrowed Rs 20923 crore via repo window and parked Rs 358 crore via reverse repo window on May 9, 2014. The overnight borrowing rates touched a high and low of 8.65% and 8.35% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.43% on Monday and total volume stood at Rs 28798.10 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.49% on Monday and total volume stood at Rs 28616.45 crore, so far. The indicative call rates which closed 8.70/8.75% 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.