Call rates edge higher on Reporting Friday

Interbank call rates were trading higher at 8.00%/8.05% against Thursday’s close of 7.70%/7.80%, above the repo level on last trading session of reporting cycle, due to good demand from borrowing banks amid tight liquidity in the banking system. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 14307 crore through three days repo auction on November 14, 2014, while banks via LAF facility borrowed Rs 15688 crore through repo window and parked Rs 6818 crore through reverse repo auction on November 13, 2014. The overnight borrowing rates touched a high and low of 8.25% and 7.80% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.03% on Friday and total volume stood at Rs 53453.89 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.87% on Thursday and total volume stood at Rs 36177.00 crore, so far. The indicative call rates which closed 7.70%/7.80% on Thursday 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.