India Interbank Call Rates Rise to 5.10% Amid Strong Demand

India’s interbank call rates, the short-term borrowing cost for banks, edged higher to 5.10% on Tuesday. This increase was driven by robust demand from borrowing banks, marking the second week of the reporting cycle.

Key Market Rates

The interbank call rates registered 5.10% on Tuesday, up from 5.09% observed on Monday.

The weighted average rate (WAR) in the call money market stood at 5.11% for Tuesday, also higher than Monday’s 5.09%.

Overnight borrowing rates touched a high of 5.20% and a low of 4.60% during the trading session.

TREP and Basket REPO Market Activity

In the Triparty Repo (TREP) market, the weighted average rate was recorded at 4.99% on Tuesday, according to CCIL data.

Total volume in the TREP market reached Rs 387941.20 crore so far for the day.

The Basket REPO market also saw its weighted average rate at 5.10% on Tuesday.

Its total volume amounted to Rs 110306.49 crore during the session.

Banking Sector Contributions

Indicative call rates closed at 5.09% on Monday, reflecting contributions from a wide array of institutions.

These included major players such as 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, and Standard Chartered.