Fitch says Indian banks ready for RBI ECL rules
Business
Fitch Ratings says Indian banks are set to roll with the RBI's new Expected Credit Loss (ECL) rules, kicking in from April 2027.
Fitch thinks the banks are up for it.
ECL trims Indian banks' ratios 0.3%-0.8%
Switching to ECL will mean Indian banks need to set aside a bit more money upfront, which could slightly lower their key capital ratio, by about 0.3% in 2027-28, or up to 0.8% if they spread it out over four years.
Still, Fitch is keeping its positive outlook on Indian banks because they're well-capitalized and can handle these changes without much trouble.