Call rates trade steady on Friday

The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively

Interbank three day’s call rates were trading steady at its previous close of 8.05/8.10% on Thursday, with banks continuing to borrow from the central bank's repo window to meet the funding gap. However, call rates could surge given the absence of OMO announcement in light of tight cash situation.  Cash deficit in the banking system rose for a seventh straight session above Rs 100,000 crore, highlighting the continued liquidity crunch in the banking system.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 118,890 crore via repo window on November 23, 2012. While, the banks using LAF facility borrowed Rs 124,040 crore through repo window and parked Rs 5 crore via reverse repo window on November 22, 2012.

The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.01% on Friday and total volume stood at Rs 11,190.96 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Friday and total volume stood at Rs 25,871.10 crore, so far.

The indicative call rates which closed at 8.05/810% 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.