New Delhi, Oct. 23 -- Banks have passed on 93 basis points (bps) of lending rate reductions to borrowers against the Reserve Bank of India's (RBI) cumulative 125 bps cut in the policy repo rate between February 2025 and March 2026, according to the RBI's October 2026 Bulletin released on Friday.

The Bulletin highlighted that the weighted average lending rate (WALR) on fresh loans declined by 93 bps during the period, reflecting the transmission of monetary policy easing to bank lending rates.

According to the RBI study, the reduction comprised an 80 bps interest rate effect and a 13 bps composition effect, indicating that both changes in lending rates and shifts in the composition of bank credit contributed to the overall decline.

"In ...