Mr. Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank
“The RBI’s decision to hold the repo rate at 5.25% and continue with its neutral stance reflects confidence in the resilience of the Indian economy, even as global conditions remain volatile amid the West Asia conflict and shifting trade policies. The Reserve Bank’s own assessment shows the banking sector continues to hold strong capital buffers, healthy liquidity and improving asset quality, which reinforces confidence in the stability of the financial system.
For our customers and businesses, this stability translates into predictable borrowing costs and continued credit flow, particularly to MSMEs and other productive sectors. The proposed harmonisation of interest rates on advances across all regulated entities, along with the draft guidelines for resuming licensing of urban co-operative banks, will further strengthen transparency and customer protection. We remain committed to supporting sustainable credit growth as India continues to build on its position as the world’s fastest-growing major economy.”
Mr. NS Venkatesh, CEO, Bharat InvITs Association
“The RBI’s decision to maintain the repo rate at 5.25% while retaining a neutral stance provides the policy stability that investors and Infrastructure Investment Trusts (InvITs) value for long-term capital planning and deployment. With GDP growth projected at 6.7% for FY2026–27 and a balanced outlook on inflation and growth, the RBI has provided greater certainty for investors and reinforced confidence in India’s long-term capital allocation across key sectors, including infrastructure.
A stable interest rate environment and the RBI’s continued focus on inflation management is positive for long-term infrastructure financing as it strengthens investor confidence. or the InvIT sector, a predictable interest rate environment is particularly important as it facilitates efficient capital raising, supports healthy valuations, and encourages sustained investment in operational infrastructure assets. As India continues to invest in nation-building infrastructure, a stable macroeconomic framework, supported by controlled inflation and a resilient growth outlook, will remain a key enabler for attracting long-term domestic and global capital into the sector.”
Shri. Brajesh Kumar, MD & CEO, Canara Bank
“The MPC decision to hold the repo rate at 5.25% is on expected lines. As retail inflation has still not crossed the 6% upper band this outcome is not surprising. Brent crude falling below 80 per barrel is an added comfort and the 10bps reduction in FY27 retail inflation forecast to 5% is attributable to lower crude.
The upward revision to GDP growth forecasts reinforces the limited impact to Indian economy from external shocks and augurs well for bank credit growth and profitability. Ample liquidity due to FCNR(B) flows will further catalyse credit growth in the banking system. Bond yields may also show some stability taking a cue from inflation forecasts.
The neutral policy stance, however, leaves room for a move in either direction in the ensuing policies depending on incoming data. Since economic growth is an important consideration at this juncture, a pause makes sense as rate hikes could strain consumption and growth. Overall, the MPC tone strikes a fine balance between growth-inflation dynamics while stressing future decisions to be data dependent.
At Canara Bank, we remain focused on Retail, Agriculture, MSME, and digital‑first lending, alongside priority areas such as infrastructure and green energy financing, to ensure credit flows to sectors that drive sustainable and inclusive growth.”