Impact of RBI Repo Rate Changes on Banks Lending Behaviour: A Comparative Study on Public and Private Sector Banks

Author(s)	Ms. Mahalakshmi R, Prof. Umarani C
Country	India
Abstract	The aim of this study is to explore the impact of the change in the Reserve Bank of India's (RBI) repo rate on the public and private sector banks on their lending practices in India from 2016 to 2025. In this study, the secondary method of data collection is used by collecting the required information from the Reserve Bank of India publications and the Database on Indian Economy (DBIE). In this study, statistical tools such as regression analysis, correlation, chi-square tests, t-test, Mann-Whitney U tests, and descriptive statistics are applied. The findings show that public sector banks have more total advances and NPA’s compared to private sector banks. This shows the greater involvement of public sector banks compared to their counterparts. Moreover, the findings show a considerable difference between the practices of public and private sector banks. Regression analysis shows that the change in the repo rate does not influence the bank advances. This study concludes that the impact of internal and institutional factors is more compared to the impact of the change in the repo rate.
Keywords	Repo rate, public sector banks, Private sector banks, non-performing asset, Monetary policies.
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-04-19
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.73682

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