In a move that underscores caution amid recovery, the RBI has opted to hold the repo rate at 5.25%, a decision experts say will propel credit growth and fortify financial stability. Banking professionals shared their insights on Wednesday, painting an optimistic picture for India’s economic trajectory.
‘Safety-first with a focus on macro stability,’ summed up Ajay Kumar Srivastava of Indian Overseas Bank. The bank’s leader applauded RBI’s MSME-friendly measures, such as scrapping due diligence for TReDS platform access, which promises smoother liquidity flows for small businesses grappling with working capital woes.
South Indian Bank’s Vinod Francis highlighted how this stability counters inflation threats, fostering a conducive setting for retail and MSME lending. Banks stand to gain from better asset-liability dynamics, he added, thanks to sufficient system liquidity.
Essar Capital’s Srinivasan Vaidyanathan called it an expected yet prudent call, reflecting RBI’s tightrope walk between growth aspirations and price stability. Protecting the rupee from global shocks remains a key priority, ensuring broader economic resilience.
For the housing sector, LIC Housing Finance’s Tribhuvan Adhikari sees relief for budget-conscious buyers, with predictable rates easing the path to homeownership. Crisil’s Dipti Deshpande noted government’s role in mitigating energy price surges, keeping consumer inflation in check.
ICRA’s Prashant Vashisth anticipates gradual relief from oil supply disruptions, even as normalization lags. Collectively, these voices affirm that RBI’s steady hand will nurture credit expansion, support reforms, and safeguard financial health, positioning India for sustained progress.
