Interbank call rates were trading lower at 7.85/7.90% against its previous close of 7.90/8.00% on Wednesday, as demand usually dwindles approaching the end of the reporting fortnight, since most of the banks have already covered their mandated requirements in order to avoid the volatility of rates going further.
Further, lower repo bids this week have also been on account of expected government spending as the budget and fiscal year end draws close, a time when spending picks up.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 57615 crore through repo window and parked Rs 1500 crore on February 6, 2013.
The overnight borrowing rates touched a high and low of 7.95% and 7.70% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.81% on Thursday and total volume stood at Rs 19244.41 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.76% on Thursday and total volume stood at Rs 15717.45 crore, so far.
The indicative call rates which closed at 7.90/8.00% 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.
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