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SBI estimates Rs 19,500 crore ECL impact; RBI working group still fine tuning implementation: Setty

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SBI estimates Rs 19,500 crore ECL impact; RBI working group still fine tuning implementation: Setty

SBI estimates Rs 19,500 crore ECL impact; RBI working group still fine tuning implementation: Setty

State Bank of India expects a Rs 19,500 crore net-of-tax impact from ECL implementation and plans to use the four-year transition period. RBI is still open to feedback from banks on the nuances of the guidelines and implementation and is planning a CEO-level meeting to review industry preparedness, SBI Chairman CS Setty said.

Bank plans to take the impact over the four-year transition period instead of upfront

RBI working group continuing discussions with banks on nuances of ECL guidelines and implementation

RBI planning CEO-level meeting with banks to review preparedness for ECL implementation

Country's largest lender State Bank of India (SBI) estimates that the implementation of Expected Credit Loss (ECL) provisioning will have a Rs 19,500 crore net-of-tax impact on the bank, while the Reserve Bank of India (RBI) continues to work with lenders on fine-tuning the implementation of the framework, SBI Chairman CS Setty said. “The ECL provision has, of course, there are a few discussions which are still happening and not a closed matter on the ECL. Final directions have come but there is a working group which is working with RBI to fine tune,” Setty said during the bank's Q2 FY27 press conference. Advt

He said SBI has already moved to its ECL models and the models are in place. The estimated impact, after taking into account taxes, is Rs 19,500 crore. However, Setty said the final ECL framework is not entirely a closed matter from an implementation perspective, with the RBI working group continuing discussions around the nuances of the framework.


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