New Delhi, June 18 -- Unlike in the past, leading commercial banks in India have swiftly responded to the Reserve Bank of India's recent monetary policy move by passing on the benefits to borrowers. The RBI's decision on June 6 to reduce the repo rate from 6% to 5.5% aims to spur economic activity by lowering borrowing costs-particularly in critical growth sectors like housing and MSMEs. Reflecting this intent, banks including HDFC Bank, Canara Bank, and Bank of Baroda have promptly revised their marginal cost of funds-based lending rates (MCLRs), offering much-needed relief to customers. However, some banks such as SBI and PNB have maintained their existing MCLR rates, indicating a more cautious approach.

The State Bank of India (SBI),...