RBI Rate Cuts Ease Corporate Debt, But Gains Uneven: BOB

RBI's recent rate cuts have eased borrowing costs, boosting corporate profitability, though sectoral gains remain uneven, a Bank of Baroda report shows.

- TBG NETWORK

The Reserve Bank of India's decision to lower interest rates has led to a marked decline in borrowing costs for companies, thereby boosting debt serviceability across several sectors, according to a report by the Bank of Baroda (BoB).

However, the report also noted that the benefits have not been evenly distributed, with a few key industries disproportionately influencing the overall trend.

According to the report, net sales of a sample of 2545 companies increased by 4.9 per cent in the first quarter of Financial Year 2026 (Q1 FY26). In the same period last year, sales had increased by 10.6 per cent.