Credit rated Indian banks can move over to IFRS 9: S&P Global Ratings

Chennai, March 1 (IANS) Credit rated banks in India are well placed to transition to the expected credit loss approach under the International Financial Reporting Standard 9 (IFRS 9) which is more forward looking, said S&P Global Ratings."We believe IFRS 9's more forward-looking approach to provisioning will improve the timeliness of loan-loss provisions, more closely align reporting with global norms, and facilitate regulatory oversight that should help to mitigate disclosure complexities," S&P Global Ratings said in a report.The report also said the transition by the Indian banks to IFRS 9 will not change the their credit ratings.The Reserve Bank of India is set to release guidance on the rollout of IFRS 9 after years of delay while the banks shaped up.S&P Global Ratings believes the new standard will enhance credit loss provisioning, transparency, and confidence in banks' financial reporting. It will also align with global financial reporting norms. But while the transition should be largely smooth, not all banks are equally prepared.
--IANS vj/shb/

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