RBI repo charge minimize: Coverage charge cuts and tempo of transmission: Monitoring an impactful 5 months in 2025

How have the banks responded
On recent loans: Weighted common lending charge (WALR) dropped 58 bps in June to eight.62%—the sharpest month-to-month decline— from 9.20% in Might

On excellent loans: WALR declined 22 bps in June to 9.45%

Financial institution group-wise transmission

• PSU banks: Strongest pass-through on excellent loans: 34 bps, now at 8.76%
• Non-public banks: Decrease transmission: 28 bps, with WALR at 10.47%

Stay Occasions

Transmission of charge since February
On recent loans (since Feb): 78 bps (9.40% to eight.62%) On excellent loans: 33bps (9.78% to 9.45%)Benchmark Influence

• Exterior Benchmark Linked Charge (EBLR): Rapid transmission
• Marginal Price of Lending Charge (MCLR): Slower adjustment
• One-year common MCLR fell from 9% in March to eight.75% in June