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

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