Kotak sees repo rates rising 75 bps
pre-market1 source ↓machine-written, see hownot a recommendation
- BANKNIFTY close
- ₹55,914
- On the day
- +0.67%
- 52-week high
- ₹56,671
- 52-week low
- ₹53,626
Veteran banker Uday Kotak said India’s repo rate could rise by as much as 75 basis points between now and April 2027, signalling the possibility of several RBI tightening moves across upcoming policy reviews. His comments were made during the India Business Leader Awards jury deliberations panel and were reported by CNBC-TV18 on 04 Nov 2026.
Kotak’s view points to higher borrowing costs for banks, businesses and households if the RBI follows that path. A sustained increase in the policy rate can raise lending rates, pressure credit demand and increase funding costs, while also affecting interest-sensitive sectors such as housing, automobiles and capital goods. The comments represent an individual market view, not an RBI announcement or policy decision. 💼
Key Points:
• Kotak expects repo rates to rise by up to 75 basis points between now and April 2027.
• The expected move would occur over multiple policy cycles rather than through a single decision.
• OI Charts data showed the banking index at ₹55,914 on 04 Nov 2026, up 0.7% on the day, with volume of 303,962,440.
• The index had gained 3.0% over five sessions and 2.7% over 20 sessions, but remained below its 52-week high of ₹56,671 recorded on 22 Sep 2026. Its 52-week low was ₹53,626 on 28 Oct 2026.
For banking stocks, the impact will depend on the balance between loan repricing, deposit costs, credit growth and asset quality. Banks with stronger deposit franchises may be better positioned to manage a higher-rate environment, while lenders relying more heavily on wholesale funding could face greater cost sensitivity. The broader financial sector may also see changes in demand for loans and refinancing activity. 📉
Markets will next watch the RBI’s policy communication, inflation and liquidity data, deposit-rate changes and evidence of any effect on credit growth. The banking index’s recent range between ₹53,626 and ₹56,671 provides the immediate market context for assessing how investors respond to changing rate expectations. Any actual rate decision would carry greater significance than the current commentary. ⚖️
Source: CNBC-TV18, 04 Nov 2026
Not investment advice. For informational purposes only.