RBI cuts in FY26 only partly reached borrowers lending rates drop but not fully

Published on 5 May 2026

Borrowers saved about Rs 19000 crore but missed the rest

RBI’s repo rate cuts in FY26 were transmitted to borrowers only partially. Weighted average lending rates fell by 93 basis points, but the benefit varied across bank types and loan categories, preventing lending rates from fully matching the policy reduction. Estimates suggest borrowers gained savings of about Rs 19,000 crore, indicating room for faster pass-through.

Lending rates fell 93 basis points after FY26 repo cuts
Rate transmission varied across banks and loan segments
Borrower savings estimated around Rs 19,000 crore
Full policy reduction was not fully reflected in lending rates

#interest rates #banking #repo rate #rbi #lending rates

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

RBI cuts in FY26 only partly reached borrowers lending rates drop but not fully

The full experience is on mobile.