By,Mr. Ajay Kumar Srivastava, Managing Director and CEO

“We welcome the RBI’s decision to reduce the repo rate by 25 basis points to 5.25 per cent while maintaining a neutral stance. This policy supports growth while keeping inflation at or below the 4 per cent target, with real GDP expected at 7.3 per cent for 2025-26 (Q3 at 7.0 per cent; Q4 at 6.5 per cent; Q1 2026-27 at 6.7 per cent and Q2 at 6.8 per cent). The rate cut is expected to ease borrowing costs, spur demand in housing and real estate, support MSMEs and sustain personal and auto loan growth.

On the financial sector side, bank credit growth remains healthy at 11 per cent and overall credit from bank and non-bank sources has risen by 13.1 per cent. The RBI’s ₹1 lakh crore OMO purchases along with the 3-year USD/INR buy-sell swap will support liquidity and monetary transmission. These measures will encourage domestic investment and deepen financial access.

We appreciate the RBI’s two-month drive beginning January 1 to address pending Ombudsman complaints, which will further strengthen customer service across the banking system. At Indian Overseas Bank, we remain committed to passing on policy benefits swiftly to customers and supporting inclusive national growth.”