Mumbai: Bankers said the RBI’s 25 bps rate cut on Friday signals scope for further easing to support sustained GDP growth.
SBI Chairman and IBA chief C S Setty said the decision, along with a neutral stance and targeted liquidity measures, aims to preserve economic momentum while maintaining price and financial stability.
He added the policy sends a “clear and confident message” that growth remains strong and inflation comfortably low.
Banks have faced pressure on net interest margins following earlier rate cuts, but many expect in-creased credit demand to partly offset income compression. Indian Overseas Bank MD & CEO Ajay Kumar Srivastava said the move will lower borrowing costs and boost demand in housing, real estate, MSMEs, and retail segments.
He also welcomed the RBI’s two-month drive from January 1 to clear pending ombudsman complaints, saying it will improve customer service.
Standard Chartered Bank India and South Asia CEO P D Singh said the cut reflects confidence in eco-nomic fundamentals and contained inflation.
He noted that the RBI’s liquidity steps—including Rs 1.45 lakh crore through G-sec OMOs and forex swaps—combined with recent GST cuts, will support activity in coming quarters.
LIC Housing Finance MD & CEO Tribhuwan Adhikari said the policy provides relief to homebuyers and should lift demand in affordable and mid-income housing. IndusInd Bank chief Rajiv Anand said the MPC used the policy space created by record-low CPI inflation due to broad-based declines across components.