Interbank call rates edged tad higher at 8.05/10% from its previous close of 8.00/8.05% on Friday. The call rates ended at 8.05/10% in an illiquid market on Saturday. The call rates usually have the tendency of going higher with the start of new reporting cycle, where in banks prefer to borrow for their mandated fortnightly requirements, to avoid the volatility of call rates going further. However, the announcement of OMO’s has kept lid at the surge of the call rates.
Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank decided to conduct Open Market Operations (OMO) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on December 4, 2012.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 54,800 crore via repo window on November 30, 2012. While, the banks using Second LAF facility borrowed Rs 32,125 crore through repo window and parked Rs 250 crore on Reporting Fortnight.
The overnight borrowing rates touched a high and low of 8.15% and 8.05% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.03% on Monday and total volume stood at Rs 15,318.96 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 30,840.00 crore, so far.
The indicative call rates which closed at 8.00/8.05% 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.
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