New Delhi, June 10, 2025.
RBI’s 50-bps repo cut and 100-bps CRR reduction have provided a vital liquidity boost to the Indian SME sector. These measures would lower borrowing costs and free up more funds in the banking system, enabling better credit access for small and medium enterprises. In the present economic climate, such steps are essential for supporting working capital needs, and encouraging growth and job creation. For SMEs, which form the backbone of India’s economy, these monetary policy actions can catalyze recovery, foster resilience, and stimulate investment, innovation, and competitiveness across the sector.”
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The RBI’s 50 bps rate cut marks a strong and proactive stance aimed at lifting the low and mid value housing segments. Over the last few years, the strong housing market momentum was increasingly concentrated in the premium end even as there were signals of weakening the lower segments. With this cumulative 100 basis point cut in the policy interest rate we expect rekindling of the lower segments as affordability will witness a meaningful improvement for such homebuyers. We hope that the developer community too renews its focus in a big way to give longer legs to this housing market upcycle which is in its 5th year. Liquidity conditions remain balanced and conducive to supporting this monetary stance and we hope to see a greater transmission of this rate cycle.”
Kaustubh Gupta, Co-Head Fixed Income, Aditya Birla Sun Life AMC Ltd, said, “With the RBI’s jumbo 50-bps repo rate cut and 100-bps CRR cut, policy easing has been front loaded. We view the policy as growth supportive and stimulative along with an indication of a clear resolve by policy makers to push for growth in an uncertain global environment. The governor also said that while growth is decent, aspirational growth is in the 7-8% range.”
Ashok Chandra, MD & CEO, PNB, said, “The RBI’s calibrated reduction in the repo rate and a shift to a neutral stance reflects a forward-looking approach to nurturing growth while maintaining price and financial stability. The decision to reduce the CRR by 100 bps in a phased manner is particularly significant, as it will enhance systemic liquidity and provide additional lending capacity to the banking sector. With inflation trending lower and macro indicators showing resilience, this policy move will support credit offtake, boost investor sentiment, and further strengthen India’s growth momentum.”
Shekhar Bhandari, President-SME, Kotak Mahindra Bank Said “RBI’s 50-bps repo cut and 100-bps CRR reduction have provided a vital liquidity boost to the Indian SME sector. These measures would lower borrowing costs and free up more funds in the banking system, enabling better credit access for small and medium enterprises. In the present economic climate, such steps are essential for supporting working capital needs, and encouraging growth and job creation. For SMEs, which form the backbone of India’s economy, these monetary policy actions can catalyze recovery, foster resilience, and stimulate investment, innovation, and competitiveness across the sector.”
