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RBI repo rate cut: These banks may benefit the most and why

The article from CNBC TV18 discusses the potential benefits for various banks in India following a repo rate cut by the Reserve Bank of India (RBI). A repo rate cut typically reduces the cost of funds for banks, which can lead to lower lending rates, thereby boosting loan demand and profitability. According to the analysis, smaller and newer private banks like Bandhan Bank and IDFC First Bank stand to gain the most due to their higher proportion of floating rate loans and less exposure to fixed-rate loans, allowing them to quickly pass on the benefits of lower rates to borrowers. Larger banks like HDFC Bank, Axis Bank, and State Bank of India (SBI) might also benefit, but their gains could be moderated by their larger base of fixed-rate loans and other operational factors. The article highlights that while all banks could see an uptick in net interest margins, the impact varies significantly based on the bank's loan portfolio composition and operational strategies.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/rbi-repo-rate-cut-which-banks-benefit-most-bandhan-idfc-first-hdfc-axis-sbi-indian-19555605.htm ]