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Below the Quote on the RBI MPC announcement by Shri Binod Kumar, MD & CEO, Indian Bank

The RBI's 25 basis points reduction in the repo rate to 6% is a timely intervention. Change in stance to accommodative is sentimentally positive, allowing room for better liquidity and growth. Together, they will support both MSME and retail demand. The MSME sector which contributes nearly 30% to India's GDP and accounts for over 40% of exports, will benefit from this move as it will ease credit costs and improve cash flows, which are critical for recovery and growth in the evolving market dynamics. We foresee improved credit appetite at Indian Bank as MSMEs form a vital part of our lending portfolio. Increasing scope of colending will further strengthen lending to these sectors.

This cut is likely to spur demand for home, auto, and personal loans, especially in tier 2 and tier 3 markets, where interest sensitivity is higher. Retail loans grew over 18% YoY as per recent trends and a lower rate environment could further accelerate consumption and support economic momentum. Indian Bank is fully geared to pass on the benefits swiftly and responsibly to our customers, ensuring inclusive credit growth.

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