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ICICI Bank reported a sharp drop in provisions, pointing to improved loan quality and stronger bad-debt recoveries. HDFC Bank chose a cautious path, prioritizing margins and asset quality over volume, and expects deposit growth to outpace credit growth.
Bank stocks fell after analysts warned the RBI's shift to an Expected Credit Loss provisioning framework from April 2027 will raise provisioning requirements and squeeze margins, with PSU banks seen as most at risk. The change aligns India with global standards but pressures near-term earnings.
The RBI now requires banks to classify all loans of a borrower as NPA if any single loan goes bad, ending the practice of treating each loan in isolation. This will likely lift reported bad loan levels and force banks to set aside more capital. Lenders with large retail or MSME portfolios face the biggest immediate
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ICICI Bank reported a sharp drop in provisions, pointing to improved loan quality and stronger bad-debt recoveries. HDFC Bank chose a cautious path, prioritizing margins and asset quality over volume, and expects deposit growth to outpace credit growth.
1mo ago · 2 min · Markets
Bank stocks fell after analysts warned the RBI's shift to an Expected Credit Loss provisioning framework from April 2027 will raise provisioning requirements and squeeze margins, with PSU banks seen as most at risk. The change aligns India with global standards but pressures near-term earnings.
2mo ago · 2 min · Markets
The RBI now requires banks to classify all loans of a borrower as NPA if any single loan goes bad, ending the practice of treating each loan in isolation. This will likely lift reported bad loan levels and force banks to set aside more capital. Lenders with large retail or MSME portfolios face the biggest immediate
2mo ago · 1 min · Policy & Government
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