According to a report by Motilal Oswal Financial Services, fresh loan yields for state-owned banks in India increased by 9 basis points in February compared to January, while private sector banks experienced a 16 basis points decline. This resulted in an overall drop of 5 basis points in fresh loan yields across the banking system. The report highlights that since the Reserve Bank of India's (RBI) 25 basis points rate cut in December 2025, yields on fresh rupee loans have decreased by 27 basis points, indicating that most of the repo-linked repricing has been completed. In terms of outstanding loans, yields fell by 4 basis points in February, with state-owned banks easing by 1 basis point and private sector banks seeing a sharper decline of 6 basis points. Since the December rate cut, yields on outstanding loans have decreased by 18 basis points for public sector banks and 22 basis points for private sector banks, suggesting that the bulk of repo-linked repricing is now behind them. Additionally, the one-year marginal cost of funds-based lending rate for private sector banks has declined by 20-275 basis points over the past year, while public sector banks have seen a more measured reduction of 30-40 basis points year-on-year.