*Sector Update: Banking* 🏦 Following the RBI MPC rate cut, several banks have reduced their repo-linked lending rates including: - PNB, BoB, and BoI to 8.35%, 8.15%, and 8.35% respectively by 50 bps. - UCO Bank and Karur Vysya Bank have also cut MCLR rates by 10–20 bps. This move is part of a broader monetary easing cycle aimed to stimulate growth and enhance credit transmission. *Our View:* - While banks may see near-term pressure on NIMs, the reduction in CRR lowers the cost of funds and improves liquidity, offering offsetting support. - Margins are expected to bottom out in 1HFY26, amid repricing of term deposit rates and interest income. Disclaimer: http://bit.ly/full-disclaimer