RBI's Bold Rate Cut Ignites Optimism in Banking Sector

The Reserve Bank of India's 0.50 per cent rate cut, coupled with a gradual reduction in cash reserve ratios, has been welcomed by bankers, who see it as a catalyst for accelerated credit growth. Top executives from major financial institutions praised the policy's unexpected, innovative nature amid global uncertainties.

CS Setty of SBI emphasized the move's potential for the banking and finance sectors, while Ashok Chandra of PNB highlighted its forward-looking approach to balancing growth with financial stability. Non-bank lenders like Tata Capital echoed these sentiments, noting the measures would ease liquidity and reduce borrowing costs.

Industry reactions suggest that this policy shift could boost domestic consumption, support investment cycles, and strengthen India's macroeconomic foundations, with expected positive impacts on both equity and debt markets.

(With inputs from agencies.)