Call rates edge higher on soaring demand on Wednesday

Interbank call rates were trading higher at 8.25%/8.30% versus its close of 7.00/7.10% on Tuesday as demand remained higher even in the second week of reporting fortnight as select banks scrambled to fulfill their product requirements in order to avoid the volatility of rates going further. However, the rates may recede approaching the fag end of reporting cycle. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 19934 crore through repo auction on June 10. Meanwhile, banks borrowed Rs 18424 crore via repo auction and parked Rs 3899 crore via reverse repo window on June 9, 2014. The overnight borrowing rates touched a high and low of 8.40% and 8.10% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.29% on Wednesday and total volume stood at Rs 31453.64 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.20% on Wednesday and total volume stood at Rs 29827.70 crore, so far. The indicative call rates which closed 7.00/7.10% 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.