RBI reform plans to strengthen bank operating environment

Global rating agencies on Monday said the RBI's recent reform package is likely to strengthen the operating environment of banks and provide more room for the banks to keep credit flowing to the broader economy.

- PTI

S&P Global Ratings said the RBI's proposal to implement an expected credit loss (ECL) framework and revised Basel III norms reflects strategic timing, allowing banks to benefit from economic growth prospects.

"The implementation of ECL by April 1, 2027, with a five-year transition, will give banks time to fine-tune their models, gather data, and smooth out the impact of ECL provisioning on profitability and capital,” it said in a statement.