Fitch Says Indian Banks Ready for Credit Loss Rules
Fitch Ratings says Indian banks have enough capital to adopt the new credit loss framework in 2027. The agency expects a manageable impact on capital ratios.
Xurve View
Xurve View
Fitch Ratings said on May 7 that banks in India have sufficient capital to transition to a new expected credit loss (ECL) provisioning framework. The Reserve Bank of India (RBI) finalized the rules to take effect on April 1, 2027. The ratings agency expects the average common equity tier 1 (CET1) ratio for the banking system to decrease by 30 basis points in the 2027-28 financial year.
