RBI''s move reflects confidence in India''s macroeconomic fundamentals: Manappuram Finance

Chennai, Feb 6 (PTI) The RBI's decision to keep the repo rate unchanged while maintaining a neutral stance, reflects the confidence in India's strengthening macroeconomic fundamentals, a top official of Kerala-based NBFC Manappuram Finance Ltd said.

The increase in the collateral free loan limit for micro, small and medium enterprises to Rs 20 lakh and the move towards a unified portal under the Lead Bank Scheme are important steps, Manappuram Finance Ltd Chairman and MD V P Nandakumar said.

"They will help improve credit access and streamline delivery mechanisms. These measures will further strengthen financing support for small businesses and entrepreneurs, enabling more inclusive and sustainable economic growth, an area where Manappuram Finance continues to play an important role, " he said in a statement on Friday.

Meanwhile, Vinod Francis, the Chief Financial Officer of Kerala-based South Indian Bank said the announcement by the Reserve Bank of India reflects "confidence in a benign inflation outlook and resilient economic growth".

"The upward revision in FY26 GDP growth, along with the RBI's assessment that system-level parameters for banks remain sound, reinforces confidence in the sector's ability to support sustained economic expansion," he said in a statement here.

For banks, a stable rate environment enables effective transmission of policy measures, disciplined balance sheet management, and calibrated credit growth across key segments, he added. PTI VIJ VIJ SA