NBFC sector welcomes RBI's status quo on rates
Welcoming the Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 5.25 per cent and maintain a neutral policy stance, Manappuram Finance Chairman and Managing Director V.P. Nandakumar has said the move reflects a balanced and prudent approach that supports economic growth while ensuring price stability amid global uncertainties.
He noted that with GDP growth projected at 6.6 per cent and consumer price inflation estimated at 5.1 per cent, the policy provides much-needed continuity at a time of heightened global volatility. A stable interest rate environment, he said, is expected to support credit demand across both retail and business segments.
According to Nandakumar, the decision is particularly significant for non-banking financial companies (NBFCs) and their customers, as interest rate stability offers greater certainty on borrowing costs. This is especially important for retail borrowers, small businesses and self-employed individuals, for whom predictable repayment obligations are crucial for financial planning.
He also highlighted the RBI’s continued focus on maintaining adequate liquidity and financial sector stability, which would help lenders efficiently meet the credit requirements of underserved and emerging customer segments.
Looking ahead, Nandakumar said the central bank is expected to remain data-driven in its policy decisions, closely monitoring inflation and growth trends before taking further action. He added that geopolitical developments, supply chain disruptions and fluctuations in global energy prices would remain key factors shaping the monetary policy outlook.
According to Nandakumar, the decision is particularly significant for non-banking financial companies (NBFCs) and their customers, as interest rate stability offers greater certainty on borrowing costs. This is especially important for retail borrowers, small businesses and self-employed individuals, for whom predictable repayment obligations are crucial for financial planning.
He also highlighted the RBI’s continued focus on maintaining adequate liquidity and financial sector stability, which would help lenders efficiently meet the credit requirements of underserved and emerging customer segments.
Looking ahead, Nandakumar said the central bank is expected to remain data-driven in its policy decisions, closely monitoring inflation and growth trends before taking further action. He added that geopolitical developments, supply chain disruptions and fluctuations in global energy prices would remain key factors shaping the monetary policy outlook.
