Call rates remain volatile
Call rates remain volatile Overnight call rates remained volatile at 1 - 7.40% on Sep. 14, 2007 on concerns over liquidity - from the outflow of advance tax payments.The inter-bank call rates remained unchanged at 5.25 - 6.15% on previous working day i.e.Sep. 13, 2007. Weighted average rate (WAR) was seen at 6.08% on both the working days.The total turnover of the call market, however, decreased to Rs 107.41 billion on Sep. 14, from Rs 160.62 billion, on the previous working day. According to the Reserve Bank of India`s (RBI) report on money market operations released on Sep.17, the turnover of term money was Rs 1.65 billion on Sep. 14 against Rs 1.20 billion, on previous working day. The interest rate stood at 7.60-8.95% on Sep. 14, against 7.35-8.25%, on the previous working day. The turnover of notice money stood at Rs 17.91 billion on Sep. 14, 2007, against Rs 0.22 billion, on the previous working day. The WAR stood at 6.31% on Sep.14, as against 5.81% on the previous working day. Further, 3-day CBLO (collaterized borrowing and lending obligation) operations fetched Rs 305.44 billion at 4.23% on Sep.14. The interest rate range was between 0.75- 6.75%, on the same day. On the previous working day, i.e. on Sep.13, 1-day CBLO operations fetched Rs 319.97 billion at 5.92% WAR. On the other hand, the transactions of 3-day market repos injected Rs 233.86 billion, compared with Rs 235.78 billion, of 1-day market repos on the previous working day. The WAR stood at 6.29% on Sep. 14 as against 6.09% on previous working days. The amount outstanding under standing liquidity adjustment facility available with the RBI was Rs 0.91 billion at 7.75%, on Sep. 14. As on Sep.12, 2007, the cumulative cash balances of the scheduled commercial banks with RBI stood at Rs 25,038.79 billion, for the fortnight ending Sep.14, 2007.
