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RBI ECL rules turn bank hits recurring as PSU banks face bigger drag than private rivals
Economy
Published on 29 April 2026
The credit hit won’t stop at one quarter
RBI’s new Expected Credit Loss framework is set to weigh on profitability repeatedly, not just as a one-off capital shock. PSU banks may take a larger hit because provisioning floor rates remain unchanged, pressuring returns on assets. The outlook varies across private banks, with some cushioned by contingent buffers while others could face sharper effects.
- ECL impact is recurring, dragging profitability over time
- PSU banks look more exposed due to unchanged provisioning floors
- Private banks differ, depending on strength of contingent buffers
- Return on assets may face renewed pressure under the rules
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times