Call rates in line with repo level in the first week of reporting cycle

Interbank call rates were trading higher at 8.00%/8.05% against Wednesday’s close of 7.50%/7.60%, more or less in with the repo level as banks continued to demand more for fulfilling their product cycle requirements, in order to avoid the volatility of rates going further. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 8881 crore through repo auction on November 19, 2014, while banks via LAF facility borrowed Rs 10914 crore through repo window and parked Rs 1915 crore through reverse repo auction on November 18, 2014. The overnight borrowing rates touched a high and low of 8.10% and 6.75% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.03% on Thursday and total volume stood at Rs 26810.17 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.98% on Thursday and total volume stood at Rs 39170.95 crore, so far. The indicative call rates which closed 7.50/7.60% 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.