RBI's Steady Policy Reinforces Confidence in India's Economic Resilience:Mr. Sarvjit Singh Samra

By:- Mr. Sarvjit Singh Samra, MD & CEO, Capital Small Finance Bank

"The RBI's decision to hold the repo rate steady at 5.25% and retain a neutral stance is a considered response to an economy that continues to perform well. Despite renewed global uncertainties, India's economy continues to demonstrate resilience, supported by strong domestic demand, robust early corporate earnings, sustained strength in the manufacturing sector, and a projected GDP growth of 6.7% for the year. These factors give the Monetary Policy Committee room to maintain policy stability. A fourth consecutive review without a rate change is a statement of confidence in India's economic fundamentals.

For Small Finance Banks, this continuity provides greater certainty. Our bank serves households, farmers, traders, and small enterprises across semi-urban and rural India, where borrowing decisions are closely linked to business and income cycles. A stable interest rate environment helps customers plan ahead, encourages local investment and enables lenders to support credit demand sustainably.

At Capital Small Finance Bank, our roots are firmly embedded in India’s heartland, and this environment supports our focus on widening access to formal credit and strengthening local enterprise. With 97.4% of our loan book secured, we remain well positioned to pursue responsible lending and deliver sustainable growth.”