There is a positive update regarding India’s economy. According to the latest report of Moody’s Ratings, India’s real GDP growth is estimated to be 6.4% in FY27, due to which India can remain the fastest-growing economy of the G-20. The outlook of the banking sector is also strong, where asset quality will remain good, NPAs will remain low and capital position will remain comfortable. Corporate, MSME and personal loans look stable, while government support is giving resilience to banks. Liquidity is balanced and profitability is also expected to remain steady. Overall, economy and banking sector together are giving new impetus to India’s growth story.

Today RBI has announced big decisions for the banking sector with the cut in Repo Rates. Reserve Bank of India (RBI) has announced Open Market Operation (OMO) purchase of Rs 1 lakh crore, which will inject durable liquidity in the market. Along with this, RBI will also do a 3-year USD-INR Buy-Sell Swap of $5 billion so that permanent liquidity is maintained in the banking system. RBI Governor Sanjay Malhotra said that whatever liquidity the system requires, RBI will provide it. In the month of December, due to tax payment, cash goes out of the banking system, in such a situation, RBI’s OMO purchase will provide relief to the banks.