Call rates trade higher on Monday

The overnight borrowing rates touched a high and low of 8.01% and 7.95% respectively

Interbank call rates were trading higher at 8.05/8.10% versus its close of 7.75/80% on Friday as demand remained on the higher side. However, Indian cash rates ended below repo rate, at 7.75/80% on October 5, 2012 as month-end government spending helped ease cash pressures. Moreover, government stake sale in state-run firms is also expected to add to system liquidity.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 61,180 crore through repo window on October 8, 2012, while, the banks borrowed Rs 10,235 crore through repo window and parked Rs 20,230 crore via reverse repo window on October 5, 2012.

The overnight borrowing rates touched a high and low of 8.01% and 7.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.09% on Monday and total volume stood at Rs 1,2094.25 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Monday and total volume stood at Rs 26,946.85 crore, so far.

The indicative call rates which closed at 7.75/80% 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.