New Delhi, Oct. 9 -- The Reserve Bank of India (RBI), on Wednesday, 7 October, raised the repo rate by 25 basis points to 5.50% and signalled a shift towards calibrated tightening, investors may have to wait longer for rate cuts.

"It underscored that given the current conditions, rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook," the central bank said.

Now, the focus is now on whether banks can protect their margins, sustain credit growth and manage funding costs over the next three to six months.

According to Gaurav Garg, Head of Research at Lemonn, large private-sector lenders could hold up better than the broader market follo...