The upgrade in the FY27 growth forecast reflects the resilience of the Indian economy, and with credit growth robust and broad-based, the fundamentals for housing remain constructive.
FinTech BizNews Service
Mumbai, 07 October, 2026: The Monetary Policy Committee (MPC) held its 63rd meeting from October 5 to 7, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
https://fintechbiznews.com/govtregulators/repo-rate-up-by-25-bps
https://fintechbiznews.com/lenders-banks/bankers-views-on-mpc-1
Here are perspectives of NBFC leaders on the MPC decisions:
Sudipta Roy, Managing Director & CEO, L&T Finance:
RBI’s decision of a 25 bps repo rate hike and change of stance to ‘calibrated tightening’ is mostly driven by continued flux in the global backdrop and sharp volatility in crude oil prices. Domestic growth momentum remains broad based even as supply side pressures on inflation are building up. This is reflected in the upward revision of both the growth and inflation outlook for FY27. Underlying credit demand remains robust, and the rate hike should help normalize financial conditions as well, as India joins major central banks in raising rates. In the meanwhile, RBI’s focus on transparency and customer centricity endures with the NBFC account aggregator interoperability announcement.
Rajiv Sabharwal, MD & CEO, Tata Capital:
“The RBI MPC’s decision to raise the repo rate by 25 basis points was largely on expected lines. With rising energy prices, broader price pressures and volatility in global markets, the move reinforces the RBI’s focus on anchoring inflationary expectations while supporting the resilience of the domestic economy. The RBI hiking the FY27 GDP growth by 40bps to 7.1% reflects the strength and resilience of Indian economy. Sound system-level financial parameters for banks and NBFCs provide further comfort on the health of the Indian financial sector.
While we are at the beginning of a rate-tightening cycle, resilient domestic demand, a healthy investment outlook, and strong financial sector fundamentals provide confidence that the underlying credit cycle will remain healthy. While NBFCs may witness gradual increase in funding costs, the extent of the impact will depend on the durability of systemic liquidity and overall market conditions. Going forward, maintaining funding resilience, prudent risk management, and a disciplined approach to credit growth will remain critical for NBFCs as they continue to support consumption, entrepreneurship, and India’s long-term economic growth.
Going forward, liquidity measures and steps to support the Rupee will be an important determinant of supporting the macro-economic stability in India.”
Ajai Shukla, MD & CEO, PNB Housing Finance:
"The RBI's 25 bps hike and the shift in stance give the market greater clarity on policy direction, and that clarity matters for long-term lenders like housing finance companies. The upgrade in the FY27 growth forecast reflects the resilience of the Indian economy, and with credit growth robust and broad-based, the fundamentals for housing remain constructive.
For home loan borrowers, the impact on EMIs will be marginal. An increase of this size is modest when set against the long-term value of owning a home, and the exact change will depend on each loan's benchmark and reset cycle. Housing demand in India is anchored in rising incomes, urbanisation and the deep aspiration to own a home, and these drivers are far stronger than a rate movement of this size. With the festive season underway, we expect healthy demand across markets, including from first-time homebuyers.
The RBI’s move to strengthen the Account Aggregator ecosystem through interconnectivity and broader financial data access is a positive step for the lending industry. Greater consent-based data sharing will enable faster and more accurate assessment of borrower cash flows, particularly for self-employed and informal-income segments that are traditionally underserved. This should enhance credit underwriting, improve customer experience through quicker approvals, and support greater financial inclusion while maintaining strong data privacy safeguards.”
Govind Sankaranarayanan, Co-founder & COO, Ecofy:
The 25 basis points increase in the repo rate to 5.5% was broadly expected, given the current inflationary pressures. For the green finance industry, we see this as a phase where maintaining access to financing will remain important to support the continued adoption of sustainable solutions. While borrowing costs may see some movement in the near term, the underlying demand for rooftop solar, electric mobility, and other green solutions remains strong. As consumers and businesses increasingly look for ways to manage energy costs and adopt cleaner technologies, green financing will continue to play an important role in enabling this transition.
(Ecofy is a green-only retail NBFC. It is built not to finance everything, but to finance what truly matters: from EVs and rooftop solar to sustainable businesses. Because India’s transition to a cleaner future shouldn’t be slowed down by complicated or inaccessible financing. That’s why Ecofy exists.)
