This policy seen as a green signal to enhance credit delivery
FinTech BizNews Service
Mumbai, August 6, 2025: The Monetary Policy Committee (MPC) held its 56th meeting from August 4 to 6, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India.
Let us know views of the industry leaders from the lending sector- bank, NBFC, SFB, MFI, HFC- on the MPC decisions:
Mr. Salee S Nair, MD & CEO, Tamilnad Mercantile Bank
“The RBI’s decision to maintain the repo rate at 5.5% with a neutral stance is a prudent move that reflects the need to strike a fine balance between nurturing growth and anchoring inflation expectations. With CPI inflation at a 77-month low and signs of robust rural consumption, this is an opportune moment for credit institutions like ours to deepen their outreach and serve as true enablers of growth. At Tamilnad Mercantile Bank, we see this policy as a green signal to enhance our credit delivery — especially to sectors like agriculture, micro-enterprises, and retail borrowers — where the multiplier effect of lending is most immediate.”
“We also welcome the RBI’s continued focus on financial inclusion through re-KYC drives and simplified claim processes, which resonate with our ethos of customer-centricity and trust. As a bank with a strong presence in Tamil Nadu and other semi-urban and rural belts, we are well positioned to translate these policy cues into grassroots impact."
CS Setty, Chairman at SBI & Chairman at IBA:
“The MPC decision to hold rates was mostly on expected lines anchored within the uncertainties posed by the lagged response of policy, trade and bottoming of inflation in some advanced economies. Inflation is likely to remain under check at 3.1% for FY26, growth impulse expected to be intact despite the concerns of external demand and supply shocks. On regulatory and development policy, the proposed guidelines on standardisation of documentation for settlement of claims in case of deceased customers is a welcome move”
Rishi Anand, MD and CEO, Aadhar Housing Finance:
"This MPC announcement comes at a critical juncture. The RBI’s decision to maintain the repo rate at 5.5% and subdued inflation tracking around 2.1 per cent in June - well below the RBI's 4% target band, supports credit stability and housing affordability. A stable interest rate regime, combined with macro policy tailwinds such as PMAY 2.0 and SWAMIH Fund support, will be key enablers in expanding credit access and improving housing affordability across Bharat.”
Sadaf Sayeed, CEO, Muthoot Microfin:
“Holding the rates was on expected lines, especially since the RBI had front-loaded a 50 bps rate cut in the last monetary policy. The focus now shifts to the transmission of these rate cuts. So far, out of the 100 bps cut since the new Governor took charge, only 55 bps has been passed on. The remaining transmission is critical to ensure that the benefits reach consumers. Effective transmission will support credit growth, which in turn will boost consumption and contribute to overall GDP growth.”
George Alexander Muthoot, Managing Director, Muthoot Finance:
“The RBI’s decision to maintain the repo rate at 5.5% with a neutral stance is a measured move in light of global headwinds and evolving domestic dynamics. While headline inflation has moderated, risks from food price volatility and external shocks persist. Meanwhile, domestic growth remains resilient, and is well supported by robust service sector, steady consumer demands and improving rural activity. For the NBFC sector, continued surplus liquidity will support lending momentum, particularly in retail credit and gold loans. This policy stability will bolster business confidence, enabling sustained consumption, and growth.”
Vivek Singh, CEO, Home Credit India:
The RBI's decision to maintain a stable rate environment is a welcome move that will bolster consumer confidence and retail credit growth. As a leading consumer finance company, Home Credit India sees this as a particularly positive signal for sectors like consumer durables, where we've seen demand consistently grow among aspiring middle-income households. This policy stability aligns perfectly with our mission to provide safe, affordable and inclusive financing solutions to those with little or no credit history. India's economic resilience and stable inflation outlook give us the confidence to continue supporting the country’s consumption-led growth.
Sarvjit Singh Samra, MD & CEO, Capital Small Finance Bank
“We appreciate the RBI’s consistent and calibrated approach to maintain the repo rate at 5.50% and providing systemic liquidity to support interest rate transmission. Given the significant 100 bps reduction earlier this year and inflation now projected at a comfortable 3.1%, this pause reflects a measured and forward-looking approach. From a macroeconomic lens, it signals confidence in the growth trajectory, with GDP expected to grow at 6.5% despite global headwinds, including recent US tariff actions. With consistent and proactive policy action, RBI is instilling confidence in the medium- to long-term economic outlook.
From an SFB standpoint, this policy continuity provides a stable environment to support credit growth, especially across underserved and priority sectors. With adequate liquidity in the system and rates now more conducive, we anticipate stronger credit demand, particularly in MSMEs, affordable housing, and rural lending.
This stance reinforces the RBI’s commitment to balancing growth with financial stability, and we remain optimistic about the evolving lending landscape in the months ahead.”
