by Mr. Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank

“The RBI’s decision to cut the Repo Rate by 25 bps to 6.25% while maintaining a neutral stance to deal with external volatility is a timely and welcome step that will help sustain economic growth and momentum. By aligning monetary policy with the Union Budget’s investment and growth focus, the RBI has reaffirmed confidence in India’s financial system and long-term economic resilience.

With borrowing costs set to ease, MSMEs, rural businesses, and semi-urban borrowers stand to benefit the most. The macroeconomic outlook, coupled with favorable growth-inflation dynamics and a well-balanced mix of fiscal and monetary policies are aligning for a pro-growth stance, creating an ideal environment for accelerated credit growth and vibrant business momentum in the economy and banking space, especially for banks like ours, with a clear focus on serving the Middle Income Group (MIG) segment with emphasis on rural and semi-urban areas (SURU).”