RBI's MCLR Overhaul Forces Faster Loan Repricing for PSU Banks

PSU banks face sharper repricing pressure under RBI's proposed MCLR changes because around 44% of their loan book was linked to MCLR as of March 2026, compared with around 9% for private banks. Fintech lenders watching for margin compression should model faster rate pass-through and retool pricing models to stay competitive on unsecured lending where repricing lags.

Source: ET BFSI ↗