New Delhi, Aug. 5 -- The transmission of policy rate cuts by the Reserve Bank of India (RBI) is visible in the outstanding books of banks, and fresh loans are given at relatively higher margins, according to a recent report by CareEdge Ratings.

The report highlighted that scheduled commercial banks (SCBs) are witnessing a decline in spreads due to the ongoing rate transmission process.

It stated, "The transmission of policy rate cuts is more visible in the outstanding book, while fresh loans are being priced with relatively higher margins."

In June 2025, SCBs experienced compression in spreads as the impact of policy rate cuts became more prominent.

The report noted that fresh loans are being priced with relatively higher margins, sho...