New Delhi, Oct. 26 -- Indian banks pass on repo rate hikes to borrowers more fully than rate cuts, according to a Reserve Bank of India (RBI) study published in its Bulletin.

Between March 2022 and January 2025, banks transmitted 76.4 per cent of a 250-basis-point repo rate hike through contractual repricing, raising lending rates by 191 basis points.

During the easing cycle from February 2025 to March 2026, banks passed on 64 per cent of a 125-basis-point repo rate cut, reducing lending rates by 80 basis points.

WALR Reflects Both Pricing And Credit Composition

The study, titled 'Transmission to Lending Rates of SCBs: Price versus Composition Effects in WALR', examines how the weighted average lending rate (WALR) reflects both loan r...