Call rates edge higher with start of fresh reporting cycle

The overnight borrowing rates touched a high and low of 7.85% and 7.75% respectively

Interbank three day call rates were little changed at 7.80/85% from its previous close of 7.70/80% on Friday, as demand edged higher with the start of new reporting fortnight. Further, call rates are expected to witness a run up rally in next two-three sessions on account of anticipation of liquidity crunch given that corporates have already started making payment towards quarterly advance taxes.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 101,860 crore through repo window on March 11, 2013, while banks using special LAF facility borrowed Rs 43,760 crore through repo window and parked Rs 125 crore via reverse repo window on March 8, 2013.

The overnight borrowing rates touched a high and low of 7.85% and 7.75% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.80% on Monday and total volume stood at Rs 25,731.98 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Monday and total volume stood at Rs 31,297.30 crore, so far.

The indicative call rates which closed at 7.70/80% 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, so far.