Binod Kumar, MD & CEO, Indian Bank
The Governor’s emphasis on pre-emptive and proactive liquidity management to ensure adequate system liquidity is a positive step and will help sustain credit flows. Initiatives to bolster MSMEs, financial inclusion, loan recovery, and digital payments reinforce the ecosystem, while the proposed fraud framework, focus on improving customer centricity and grievance redressal across the banking system will enhance trust of the customers and service quality.
Salee S Nair, MD and CEO, Tamilnad Mercantile Bank
RBI’s latest policy initiatives point to a deeper shift in how banking growth will be defined in the coming cycle — less by volume alone and more by quality, trust and informed participation. Measures to protect senior citizens from digital fraud recognise that inclusion without confidence can weaken the system, and banks must design assisted, secure pathways for customers who are newly digital. The decision to raise the collateral-free MSME loan limit to ₹20 lakh acknowledges that India’s next phase of enterprise growth will be driven by small, often informal businesses that require timely, unsecured credit rather than complex structures. Similarly, permitting banks to lend to REITs signals a maturing financial ecosystem where long-term capital, asset monetisation and balance-sheet discipline can coexist.
Dipti Deshpande, Principal Economist Crisil Ltd
In line with expectations, the MPC kept policy rates unchanged, while maintaining the neutral stance, reflecting a wait-and-watch approach. The MPC is factoring in a likely uptick in inflation in the first half of next fiscal, as growth remains strong. In addition, upcoming revisions to inflation and gross domestic product data—following changes in the methodology and base—call for prudence. While the RBI Governor did not explicitly announce fresh liquidity-easing measures, recent actions (of Open Market Operations and forex swaps), suggest the RBI will stay proactive on liquidity. The objective is to keep lending rates easy. The MPC will likely maintain pause next fiscal as the inflation trajectory ascends and growth remains healthy.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE
RBI Governor Sanjay Malhotra’s announcement that banks are now permitted to lend directly to Real Estate Investment Trusts (REITs) is likely to be a major boost to these instruments, and make it easier for the trusts to raise funds at relatively cheaper rates. Banks were generally restricted from lending directly to the REITs and they had to borrow through their Special Purpose Vehicles (SPVs) or rely on issuing bonds and raising equity in the capital markets.
With bank lending now available, REITs may now have a diversified funding base, making them less vulnerable to capital market volatility. Moreover, they may now easily refinance existing higher-cost debt with more stable bank loans, improving their distributable cash flows.
Anuj Puri, Chairman – ANAROCK Group
Demand for affordable and mid-segment homes remains strong, but continues to be challenged by escalated pricing, which affects affordability. A rate cut would have potentially brought at least some fence-sitters back to the market. On a positive note, the move to allow banks to lend money directly to REITs within the rules makes it easier for REITs to raise capital, lowers expenses, and speeds up asset expansion in the office and retail segments. This makes these segments more appealing to investors and is positive for the broader real estate financing spectrum. It needs to be accompanied by strong regulatory safeguards on exposure limits, and robust credit underwriting and monitoring practices.
Vinayak Magotra, Product Head & Founding Team, Centricity WealthTech
Overall, the MPC reinforced a cautious, data-dependent approach, allowing past actions to continue working through the system. Future policy decisions will hinge on incoming data and the trajectories of inflation and growth under the new series. While further easing appears unlikely at this stage, it cannot be ruled out should downside risks to growth emerge.
Abhimanyu Munjal, MD & CEO, Hero FinCorp
The Reserve Bank of India’s decision to keep the repo rate unchanged provides much-needed predictability amid a volatile global environment. Coming after a mature and investor-friendly Union Budget, this steady policy stance gives NBFCs and India Inc the confidence to plan for the year ahead. The increase in the collateral-free loan limit for MSMEs to ₹20 lakh is a particularly welcome move, as it will enable NBFCs like Hero FinCorp to expand access to formal credit more effectively across tier-2 and tier-3 markets.
Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank
The RBI’s decision to maintain the policy rate while continuing with a neutral stance reflects a balanced approach amid evolving global and domestic conditions. With inflation remaining benign, the policy framework provides stability and adequate headroom to support growth while preserving macroeconomic discipline.
The central bank’s confidence in India’s growth outlook underlines the resilience of domestic demand and the effectiveness of recent policy measures. We also welcome the RBI’s continued emphasis on strengthening the financial ecosystem through customer protection, improved liquidity management, and enhanced credit flow to MSMEs, alongside steps to deepen financial markets. At Indian Overseas Bank, we view this stance as supportive of sustainable growth and remain focused on responsible credit delivery and customer-centric banking.
Puneet Pal, Head – Fixed Income, PGIM India Mutual Fund
We believe that the rate cutting cycle has come to an end with growth expected to remain robust after the signing of trade deals with the EU and the announcement of a trade deal with the USA. The MPC will be on a prolonged pause with RBI continuing to focus on liquidity management through Open Market Purchases and FX swaps though we believe that the higher gross borrowing in FY27 at a time when market is already struggling with adverse demand/supply dynamics will lead to further upward pressure on yields with a steepening bias. We expect the 10yr bond yield to trend gradually towards 7 per cent over the course of the next 3-6 months.
