After the RBI Rate Hike: A Chairman's Treasury Checklist for Growing Groups

What happened, in one paragraph

Financial media reported a 25 basis point increase in the repo rate on 7 October 2026, together with a change of stance to calibrated tightening. For companies with floating-rate loans, the cost of money rises at the next reset date. For savers and treasuries, deposit and short-term instruments become more attractive. Please confirm the exact policy statement with the RBI itself before you act.

The checklist we use at group level

• List every floating-rate liability and its reset date, company by company.
• Stress-test interest cover and the debt service coverage ratio at the higher rate, and at one more step above it.
• Review receivable collection and vendor payment terms; a few days gained is cheaper than a loan.
• Compare deposits and short-term options for surplus cash instead of leaving it idle in current accounts.
• Re-plan the timing and financing mix of capital expenditure, and avoid starting everything in the same quarter.

Think beyond the rate

A rate change travels through currency, equity markets and customer demand. A group that sells to farmers, to government bodies and to small businesses feels each of these differently. We keep a contingency plan for both revenue and costs, and we review it whenever the central bank speaks.

Holding companies have one advantage here: surplus in one company can be planned against the needs of another, within the law and with proper records. That only works when finance is organised at group level and not left to each unit.

Frequently asked questions