Bankers Applaud RBI's Prudent Policy Review: A Safety-First Strategy

Bankers have described the Reserve Bank of India's decision to hold rates as a prudent and well-calibrated measure in its latest policy review. Specific sectoral adjustments, like removing the Investment Fluctuation Reserve requirement, were met with approval by industry leaders.

CS Setty of SBI emphasized that the RBI's approach mirrors market expectations during ongoing global uncertainties. Ajay Kumar Srivastava of Indian Overseas Bank highlighted the central bank's 'safety first' approach, considering geopolitical tensions and fluctuating oil prices as key factors.

Sanjay Agrawal of AU Small Finance, and P D Singh of Standard Chartered Bank, noted improvements in capital metrics and MSME liquidity as structural enhancements. George Alexander Muthoot of Muthoot Finance underscored the RBI's policy as confidence-boosting for the economic fundamentals of India.