Fitch says Indian banks are ready for expected credit loss rules in 2027

Rules begin April 2027 but banks get a four year cushion

Fitch Ratings says Indian banks are well placed to shift to the expected credit loss provisioning framework that begins April 1, 2027. Fitch expects sufficient capitalisation, though common equity tier 1 may dip slightly. Banks can use a four-year transition period as initial provisions run higher than forecast, which Fitch links to a positive outlook.