Analysts say top pvt banks, PSBs well positioned for ECL norm transition

Analysts say large lenders like HDFC Bank, ICICI Bank and SBI have strong provisioning buffers, while those with unsecured or microfinance exposure may face higher impact

Large private sector banks like HDFC, ICICI and Axis, and public sector banks are well positioned to absorb the additional provisioning requirement while transitioning to the expected credit loss (ECL) framework, analysts said.

 

On Wednesday, the Reserve Bank of India published draft norms of the ECL framework which is proposed to come into effect from April 1, 2027.

 

According to analysts, banks with higher exposure to unsecured and micro finance loans will have a higher provisioning burden.

 

 “Under the new ECL regime, the top private banks, such as HDFC, ICICI and Axis, are well positioned as their strong underwriting, secured