Lending rates are expected to drop by about 30 basis points (bps) after the recent cut in policy rates, according to a new SBI report.

This change will be felt most immediately in loans linked to the External Benchmark Lending Rate (EBLR), which account for around 60 per cent of all loans given by Scheduled Commercial Banks (ASCBs), as per the data compiled by State Bank of India (SBI) Research said.

The report said that because of this high share of EBLR-linked loans, the impact of the policy rate cut will be passed on quickly, making loans cheaper for many borrowers.

“This move is aimed at reducing borrowing costs and boosting demand in the economy,” the report added.

The Nifty Microcap 250 index posted a strong performance in the month of May, rising 12.10 per cent, while the Nifty Smallcap 250 also recorded an impressive 9.59 per cent gain, according to a report released on Saturday.

The broader market remained positive throughout the month, with smaller companies leading the rally, said the latest 'Global Market Snapshot' report by Motilal Oswal Asset Management Company.

Over the past year, the Nifty Microcap 250 grew by 13.74 per cent, and the Nifty Smallcap 250 gained 7.72 per cent, showing continued investor interest in micro and small-cap stocks.

Other major indices also posted gains in May. The benchmark Nifty 50 rose 1.71 per cent, while the Nifty Next 50 and Nifty Midcap 150 advanced by 3.49 per cent and 6.30 per cent, respectively.

The Securities and Exchange Board of India (SEBI) has issued a corrigendum to its interim order against IndusInd Bank Limited, replacing a key reference to clarify the nature of documents involved in the bank’s internal dealings.

The market regulator said the term ‘board note’ used in its earlier order would now be read as ‘engagement note’.

This correction comes as SEBI continues to investigate accounting irregularities at the private sector lender.

Earlier, the regulator had mentioned that global consulting firm KPMG was appointed by IndusInd Bank in February 2024 based on a ‘board note’.

However, it has now clarified that KPMG’s appointment was actually based on an ‘engagement note’, a less formal document usually used for assigning tasks to external consultants.

After starting the week with consolidation, the domestic market exhibited resilience amid concerns over tariff wars and geopolitical escalations, analysts said on Saturday.

Markets consolidated for the third consecutive week but managed to end higher by nearly a per cent, buoyed by favourable domestic cues.

After remaining range-bound for most of the week, benchmark indices surged sharply on Friday and settled near the week’s high, with the Nifty closing at 25,003 and the Sensex at 82,118.99.

“The highlight of the week was the RBI’s policy announcement, which took the market by surprise. The central bank implemented a sharper-than-expected 50 bps repo rate cut and a 100 bps CRR reduction, signalling a strong pro-growth stance. Notably, the policy stance was also shifted from ‘accommodative’ to ‘neutral’ — a move that came sooner than expected,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.

In a significant feat under Prime Minister Narendra Modi's visionary government, India has made key strides in the last decade in reducing its extreme poverty rate, which fell to 5.3 per cent in 2022–23 from 27.1 per cent in 2011–12, latest World Bank data has revealed.

About 75.24 million people were living in extreme poverty in India during 2022–23, a massive drop from 344.47 million in 2011–12.

According to the World Bank data, this means 269 million individuals were lifted out of extreme poverty over approximately 11 years.

Uttar Pradesh, Maharashtra, Bihar, West Bengal and Madhya Pradesh, which collectively accounted for 65 per cent of India’s extreme poor in 2011–12, contributed to two-thirds of the overall decline in extreme poverty by 2022–23.

The Bank of India (BOI) on Friday reduced its repo-based lending rate (RBLR) by 50 basis points, bringing it down from 8.85 per cent to 8.35 per cent.

This move follows the Reserve Bank of India's (RBI) decision to cut the repo rate by 50 basis points, lowering it from 6 per cent to 5.5 per cent.

The central bank’s decision is aimed at boosting economic activity by making loans cheaper for businesses and individuals.

The RBI's Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, announced this rate cut during its latest policy meeting.

Leading industry chambers on Friday lauded the RBI’s rate cut decision, describing the continuation in the accommodative policy stance as a catalyst for boosting capex and demand across different sectors of the economy.

Assocham expressed delight at the 50-basis-point reduction in the policy interest rates.

"The MPC's repo rate cut of 50 basis points and cash reserve ratio cut of 100 bps is expected to reduce lending rates, spur growth in the economy and encourage borrowing from industry for capex," said Assocham President Sanjay Nayar.

India's foreign exchange reserves stood at $691.5 billion, as of May 30, and are sufficient to fund more than 11 months of goods imports and about 96 per cent of external debt outstanding, RBI Governor Sanjay Malhotra said on Friday.

For the week ended May 30, the reserves dropped by $1.2 billion to break an 8-week rising trend. India’s foreign exchange reserves had recorded a robust increase of $6.99 billion to $692.72 billion in the preceding week ended May 23.

Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in the reserves.

External commercial borrowings (ECBs) and non-resident deposits have seen higher net inflows compared to the previous year.

The Reserve Bank of India (RBI) Governor said: "Overall, India’s external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements."

The domestic benchmark indices surged on Friday after the Reserve Bank of India (RBI) reduced repo rate by 50 basis points to 5.50 per cent and cash reserve ratio (CRR) by 100 basis points (in four tranches).

Sensex gained 746.95 points or 0.92 per cent at 82,188.99 and the Nifty rose 252.15 points or 1.02 percent to close at 25,003.05.

The rise was led by banking stocks. Nifty Bank closed at 56,578.40, up 817.55 points or 1.47 per cent. During the day, Bank Nifty touched the level of 56,695, which is the highest level of the main banking index so far.

Along with largecaps, midcaps and smallcaps also witnessed a rise. The Nifty Midcap 100 index was up 707.30 points, or 1.21 per cent, at 59,010.30, and the Nifty Smallcap 100 index was up 149.85 points, or 0.81 per cent, at 18,582.45.

The jumbo 50 bps rate cut by the Reserve Bank of India (RBI) will directly benefit home loan borrowers, especially existing ones, by reducing their interest burden, experts said on Friday.

The decision comes at a pivotal time, as India, now the world’s fourth-largest economy, is witnessing strong real estate momentum across metros as well as tier 2 and 3 cities.

“Lower lending rates will directly enhance home loan affordability, particularly in interest-sensitive categories like mid-income and affordable housing. Reduced EMIs are expected to significantly improve buyer sentiment and encourage first-time homebuyers to enter the market,” said Shekhar G Patel, President, the Confederation of Real Estate Developers' Associations of India (CREDAI).