Tag: Reserve Bank of India

IndustryLatest Stories

RBI Cuts Repo Rate to 5.25%, Boosting Real Estate Growth

NEW DELHI: The Reserve Bank of India (RBI) has cut the policy repo rate by 25 basis points to 5.25%, indicating a shift towards monetary easing as inflation stabilizes at multi-year lows. This decision was made unanimously by the Monetary Policy Committee (MPC) during its 58th meeting held from December 3-5, 2025. With this rate cut, the standing deposit facility (SDF) rate is now at 5.00%, while the marginal standing facility (MSF) rate and the Bank Rate have been set to 5.50%. The MPC has also opted to maintain a neutral stance going forward. Growth Outlook Remains Strong India’s GDP…

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RBI Cuts Key Rate to 5.25% Amid Strong GDP and Low Inflation

MUMBAI: On Friday, the Reserve Bank of India announced a reduction of 25 basis points in the policy repo rate, lowering it to 5.25 percent. This decision was shared by RBI Governor Sanjay Malhotra following the conclusion of a three-day Monetary Policy Committee (MPC) meeting that took place from December 3 to 5. The Governor noted that the MPC conducted a comprehensive review of the changing macroeconomic landscape and future forecasts before reaching a unanimous agreement on the rate cut, which takes effect immediately. During the announcement, the Governor stated, “The MPC convened on December 3rd, 4th, and 5th to…

Housing FinanceLatest Stories

Aviom India Housing Finance Promoter Offers Dues Settlement Amid Bids

KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance has proposed a settlement plan to lenders to settle Rs 1,385 crore in debts over 26 months, including accrued interest, according to sources. Promoter Kajal Ilmi presented the proposal late Wednesday while the company is under insolvency proceedings initiated by the Reserve Bank of India (RBI). Six entities have expressed interest in takeover bids. The proposal includes an upfront payment of Rs 350 crore, with the remaining accrued interest to be paid within 24 months after the initial 26-month principal repayment. Ilmi’s plan outlines full payment to operational creditors and…

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RBI Exempts SWAMIH Fund from AIF Rules

BENGALURU: The Reserve Bank of India has announced a waiver of its stringent regulations concerning alternate investment funds (AIF) for a government-supported real estate rescue fund, as disclosed in a notification on Friday. The fund, named the Special Window for Affordable and Mid-Income Housing (SWAMIH), was established in 2019 to assist struggling real estate projects with debt financing for halted housing initiatives. SWAMIH is managed by SBICAP Ventures, a subsidiary of the government-owned State Bank of India, which is also a significant investor in the fund. Last year, the RBI mandated that banks and non-banking finance companies increase their provisions…

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RBI Could Allow Real Estate to Access Offshore Loans

A recent proposal to liberalize India’s foreign loan framework includes a change long resisted by former Reserve Bank of India (RBI) governors. This involves allowing external commercial borrowings (ECBs) in the real estate sector, a move that has faced opposition since the Asian Financial Crisis of 1997, which was partly fueled by foreign currency debts linked to property. Past RBI governors have remained cautious about the risks of foreign investments in the real estate market due to the financial turmoil in countries like Thailand, South Korea, and Indonesia. A detailed look at RBI’s draft ECB policy shows a willingness to…

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RBI Holds Rates Steady Amid Trump Tariff Uncertainty

MUMBAI: The Reserve Bank of India (RBI) has maintained its policy interest rate at 5.5% for the second consecutive time, citing concerns regarding tariff uncertainties. During the announcement of the fourth bi-monthly monetary policy for the current fiscal year, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) unanimously opted to keep the short-term lending rate, known as the repo rate, unchanged at 5.5% with a neutral stance. Governor Malhotra indicated that while the rationalization of GST rates could have a moderating effect on consumption and growth, developments related to tariffs may hinder economic expansion in the latter…

Housing FinanceLatest Stories

Mortgage Rate War Hits Housing Finance Companies Hard

Housing finance companies (HFCs) are under considerable strain due to aggressive mortgage pricing by public sector banks, leading to reduced margins. Although loan disbursals are growing, many HFCs are not experiencing a corresponding rise in assets under management (AUM), primarily because borrowers are transferring their home loans to rival firms. In the June 2025 quarter, Bajaj Housing Finance reported a 0.5% drop in net profit, while Aadhar Housing Finance and LIC Housing Finance experienced growth rates of 10% and 5%, respectively. The recent reduction in lending rates by the Reserve Bank of India, which cut the repo rate by 100…

Housing FinanceLatest Stories

Housing Finance Firms Scrutinized for Lending Issues

The National Housing Bank (NHB) is intensifying its scrutiny of housing finance companies (HFCs) for violating loan-to-value (LTV) norms concerning high-value home loans, according to sources familiar with the matter. Regulatory inspections by the NHB uncovered instances where loans exceeding ₹75 lakh were approved with LTVs as high as 90%, breaching the established 75% limit. The NHB has instructed lenders to reclassify these loans as non-home loans (NHL). “The regulator has identified several mortgage lenders disbursing substantial amounts for high-value residential properties,” an NHB official stated. “The NHB has communicated with these firms, ordering them to cease such practices and…

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RBI Holds Interest Rate Steady at 5.5%

MUMBAI: The Reserve Bank of India (RBI) has maintained the policy rate at 5.5% following three consecutive interest rate cuts, citing concerns over tariff fluctuations. In the announcement of the third bi-monthly monetary policy for the fiscal year, RBI Governor Sanjay Malhotra shared that the growth rate forecast for FY26 remains at 6.5%. The Monetary Policy Committee (MPC) unanimously opted to keep the short-term lending rate, or repo rate, steady at 5.5% with a neutral stance. Regarding inflation, the RBI Governor reduced the projection for the current financial year to 3.1%, down from the previous estimate of 3.7%. Since February…

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RBI Keeps FY26 Growth at 6.5%, Lowers Inflation to 3.1%

MUMBAI: The Reserve Bank of India announced on Wednesday that it is maintaining its GDP growth forecast for the current fiscal year at 6.5%, while reducing its inflation projection from 3.7% to 3.1%. During the release of the third bi-monthly monetary policy for 2025-26, RBI Governor Sanjay Malhotra noted that the favorable southwest monsoon, declining inflation, increasing capacity utilization, and supportive financial conditions are all contributing positively to domestic economic activity. The combination of strong monetary, regulatory, and fiscal policies, alongside significant government capital spending, is expected to drive demand. The services sector is predicted to maintain robust growth, particularly…