Indian banks' switch to IFRS accounting norms unlikely to hit rating -Fitch

MUMBAI : The benefits of Indian banks' switching to the International Financial Reporting Standards accounting rules will outweigh any short-term impact on capital levels and is unlikely to drive rating changes, said credit rating agency Fitch.

However, it warned that specific banks' capital and risk management responses could have an impact on their standalone viability ratings. "The ECL framework primarily addresses the problem of procyclical provisions as banks are required to estimate ECL ahead of adverse credit events, instead of making provisions after loans have become impaired, as is the current norm," it said.

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