The Reserve Bank of India's three key proposals—the expected credit loss (ECL) framework, liquidity coverage ratio (LCR) norms, and project finance proposals—have kept the banking industry on tenterhooks for quite some time.
The guidelines, if implemented in their current format, are expected to increase provisioning, leading to a rise in credit costs for borrowers by at least 400-500 basis points (bps), said analysts. This, coming at a time when the interest rate cycle is reversing, is worrisome for them. In addition, Finance Minister Nirmala Sitharaman has recently asked banks to cut rates.
The ECL framework alone will impact banks' core capital by around 300 basis points, say experts. LCR norms are likely to have a 200-250 bps impact on banks' net demand and time liabilities (NDTL), experts added.
ICRA, in a report, said that the impact of the whole transition to IndAS, including the ECL framework, could be as much as 300 to 400 bps.
Bu hikaye Financial Express Hyderabad dergisinin December 10, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Financial Express Hyderabad dergisinin December 10, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
SBI chief Setty may head IBA
Former PNB MD AK Goel likely to be chief executive
Set yourself free from wires
The audio gear is ideal for sound lovers on the move
US Firm Firefly Scores Its First Moon Landing With Blue Ghost Spacecraft
A PRIVATE LUNAR lander carrying a drill, vacuum and other experiments for NASA touched down on the moon Sunday, the latest in a string of companies looking to kickstart business on Earth's celestial neighbour ahead of astronaut missions.
Market prepares for a slow grind
THE NIFTY SLUMPED 420 points, or 1.86%, on Friday to close at its lowest since June 2024 at 22,124.
Rebooting PLI: Domestic value addition and exports among likely metrics
AS THE FIRST phase of the Indian government's flagship Production-Linked Incentive (PLI) scheme attains some traction, there's a renewed debate in the top levels of the government.
A lot can happen over lunch
Unlike most startup founders, they were not techies who bonded over their passion for coding in the premises of an Indian Institute of Technology.
Playing it safe and fair
FOR ADVERTISERS IN India, the digital playground that once offered limitless creative freedom is rapidly becoming a high-stakes game of risk management.
SpiceJet spreads wings with expanded fleet
Flying High
Invest in unit-linked pension plan for your golden years
Flexibility in asset allocation & life cover make it ideal
Making AI PCs affordable & within reach of all
QUALCOMM HAS BEEN leaning on AI to gain a foothold in the PC market.
