Call rates trade steady on Wednesday

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively

Interbank call rates were trading steady at its previous close of 7.75/7.85% on Tuesday, with demand remaining stable in the first week of the reporting fortnight. Further, surge of cash rates was also capped by RBI’s announcement of open market announcement.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of  Rs 10,000 crore on February 15, 2013.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 123,965 crore through repo window and parked Rs 15 crore via reverse repo window on February 12, 2013, while banks using LAF facility borrowed Rs 109,480 crore through repo window on February 11, 2013 and parked Rs 10 crore via reverse repo window on the same day.

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.83% on Wednesday and total volume stood at Rs 21,993.05 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Wednesday and total volume stood at Rs 20,080.25 crore, so far.

The indicative call rates which closed at 7.75/85% 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, so far.