We welcome and commend the decisive and well-calibrated stance taken by the December 2025 MPC under Governor Shaktikanta Das. The unanimous 25 basis‑point cut in the repo rate to 5.25%, accompanied by a neutral policy stance, reflects the RBI’s commitment to sustaining growth while maintaining price stability. Liquidity support through ₹1 trillion in open market operations and a $5 billion USD/INR swap further strengthens credit availability and enhances the transmission of monetary policy. For a 104‑year-old institution like Tamilnad Mercantile Bank, these measures create a supportive environment for expanding credit and deepening customer engagement. The policy is expected to benefit our customers directly through more accessible and affordable home, vehicle, and SME loans, improved deposit returns, and enhanced access to financial services in semi-urban and rural areas. This aligns perfectly with TMB’s long-standing mission of promoting financial inclusion and enabling growth for individuals and businesses alike. Looking ahead to 2026, the banking sector can anticipate a stable-to-supportive interest rate environment and sustained liquidity. At TMB, we are well-positioned to leverage these conditions to accelerate credit delivery, enhance digital and branch services, and provide customers with competitive interest rates and timely financial solutions, thereby strengthening financial resilience, fostering growth, and building long-term trust with our communities.

Salee S Nair, MD & CEO, Tamilnad Mercantile Bank