Impact on ECL: Banks could increase lending rates and revise lending strategy, experts say

Expected credit losses will help banks better understand their portfolio mix | Photo credit: iStockphoto The Reserve Bank of India’s draft guidelines on expected credit losses (ECL) for banks, if implemented unchanged, could lead to lenders pricing loans upwards and reshaping their lending strategies, experts say. “Expected credit losses will help banks better understand their […]

RBI may approve 1-3% provisioning floor for phase 2 loans under ECL framework: sources

FILE PHOTO: A man walks past the Reserve Bank of India (RBI) logo outside its headquarters in Mumbai, India, June 6, 2025. REUTERS/Francis Mascarenhas/File Photo | Photo credit: FRANCIS MASCARENHAS The Reserve Bank of India may consider approving bankers’ request to reduce provisioning requirement for phase-2 loans to 1-3 per cent from the proposed 5 […]