Repo rate transmission to NBFCs remains slow
pre-market1 source ↓written by the desknot a recommendation
- of cumulative policy
- 50%
- for some lenders
- 12 months
The transmission of repo rate changes to non-banking financial companies (NBFCs) is progressing slowly, with only 50% of cumulative policy rate changes reflected so far. Industry experts indicate that full transmission may take up to 12 months for some lenders, influenced by funding sources and market conditions. Larger, well-rated NBFCs are benefiting more quickly by tapping bond markets as bank lending rates remain high.
Not investment advice. For informational purposes only.