Call rates unchanged ahead of reserves reporting

The overnight borrowing rates touched a high and low of 8.10% and 7.65% respectively

Interbank call rates remained unchanged at its previous close of 8.00/8.10%, as demand diminished ahead of reserves reporting on Friday. However, RBI’s OMO operations also helped ease liquidity pressure to some extent.

Continuing with its old monetary policy stance based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank conducted OMO by purchasing the government securities on December 11, 2012

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 73335 crore via repo window on December 12, 2012, while bank by using LAF facility borrowed Rs 82805 crore and parked Rs 2000 crore via reverse repo window on December 11, 2012.

The overnight borrowing rates touched a high and low of 8.10% and 7.65% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.00% on Tuesday and total volume stood at Rs 15641.03 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.97% on Tuesday and total volume stood at Rs 62579.35 crore, so far.

The indicative call rates which closed at 8.00/8.10% on Tuesday 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.