- ALSO READ
Indian banks' switch to IFRS norms unlikely to drive rating changes: Fitch
Indian banks well placed to transit to Expected Credit Loss regime: S&P
More insurance players required for diverse needs of citizens: Irdai chief
Most rated Cos have buffer to manage rupee depreciation, says Moody's
What is credit score? Why is it important?
-
Credit rated banks in India are well placed to transition to the expected credit loss approach under the International Financial Reporting Standard 9 (IFRS 9) which is more forward looking, said S&P Global Ratings.
"We believe IFRS 9's more forward-looking approach to provisioning will improve the timeliness of loan-loss provisions, more closely align reporting with global norms, and facilitate regulatory oversight that should help to mitigate disclosure complexities," S&P Global Ratings said in a report.
The report also said the transition by the Indian banks to IFRS 9 will not change the their credit ratings.
The Reserve Bank of India is set to release guidance on the rollout of IFRS 9 after years of delay while the banks shaped up.
S&P Global Ratings believes the new standard will enhance credit loss provisioning, transparency, and confidence in banks' financial reporting. It will also align with global financial reporting norms. But while the transition should be largely smooth, not all banks are equally prepared.
--IANS
vj/shb/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.
Download the Business Standard App for latest Business News and Market News .
First Published: Wed, March 01 2023. 16:50 IST
RECOMMENDED FOR YOU