1 The Transmission of Monetary Policy Within Banks: Evidence from India 1 Abhiman Das IIM Ahmedabad and Reserve Bank of India Prachi Mishra IMF and Reserve Bank of India Nagpurnanand Prabhala CAFRAL and University of Maryland, College Park November 2015 Between 1996 and 2013, India’s central bank injected or drained liquidity from banks through changes in cash reserve requirements. We analyze the lending responses to these quantitative tools of monetary policy using branch level lending data. We focus on the within- bank variation across different branches of the same bank, controlling for variation between banks stressed in prior work through a saturated specification with interactive bank-year and region-year fixed effects. We show that the intra-variation is important and that branch level asset, liability, and organizational variables explain the intra-variation. Branches that are larger, make loans with smaller ticket size, are deposit-rich, make shorter term loans, have fewer non-performing assets, and with greater managerial capacity respond more to monetary policy. Transmission effects are more sluggish in state-owned banks. JEL classification: E52, G21 1 Abhiman Das can be reached at abhiman@iimahd.ernet.in, Prachi Mishra at prachimishra@rbi.org.in, and Prabhala at prabhala.cafral@rbi.org.in. We thank Viral Acharya, Sumit Agarwal, Charles Calomiris, Anusha Chari, Indranil Sengupta, Peter Montiel, Urjit Patel, Raghuram Rajan, Prasanna Tantri, Saugata Bhattacharya, Bernard Yeung, and seminar participants at the ISB CAF summer conference, NUS Business School, Reserve Bank of India, Society for Economic Research in India, UC San Diego, and UCLA for many useful comments and suggestions. The views expressed are those of the authors and not of the institutions they are affiliated with. We retain responsibility for any remaining errors.