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Indian banks well placed to transit to Expected Credit Loss regime: S&P

This transition is not expected to change ratings on these banks

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The Reserve Bank of India is set to release guidance on the rollout of IFRS 9 after years of delay while the banks shaped up.

BS Reporter Mumbai
Standard and Poor’s on Tuesday said that Indian Banks rated by it are largely well placed to transition to the Expected Credit Loss (ECL) approach under International Financial Reporting Standard 9 (IFRS 9).

This transition is not expected to change ratings on these banks. While the transition should be largely smooth, not all banks are equally prepared.

IFRS 9's more forward-looking approach to provisioning will improve the timeliness of loan-loss provisions and more closely align reporting with global norms. It would facilitate regulatory oversight that should help to mitigate disclosure complexities, S&P said in its report “India Banks Poised for

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First Published: Feb 28 2023 | 1:13 PM IST

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