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New Delhi, CNI NEWS The Institute of Cost Accountants of India (ICMAI) on Tuesday launched two professional handbooks on Expected Credit Loss (ECL) and restructuring of bank loans, aimed at helping banks, borrowers, MSMEs and finance professionals prepare for the Reserve Bank of India’s ECL framework coming into effect from April 1, 2027.
The launch was attended by CMA Chittaranjan Chattopadhyay, President, ICMAI; CMA Manoj Kumar Anand, Vice-President, ICMAI; CMA Harshad Deshpande, Chairman, BFSI Board, ICMAI, who joined online; CMA Puneet Jain, Director, NIPSCOM; Dr. P. Siva Rama Prasad, author of the publications; and Dr. Ramjas Yadav, former Executive Director, Bank of Baroda. CMA M. K. Mohan Tanksale, former Chairman and Managing Director of Central Bank of India and former Chief Executive of the Indian Banks’ Association, also addressed the event online.
The publications — Expected Credit Loss (ECL) Framework: A Practical Handbook for Indian Banks and Handbook on Restructuring of Bank Loans — have been developed as practical reference resources for bankers, CMAs, corporate borrowers, MSMEs and other stakeholders navigating changes in credit assessment and stressed-loan management.
The ECL handbook explains key aspects of the new framework, including Stage 1, Stage 2 and Stage 3 classification, Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), forward-looking macroeconomic factors, data requirements, model development and validation, technology and automation, accounting, audit, disclosure and transition strategies. It also includes case studies and practical illustrations.
The Handbook on Restructuring of Bank Loans focuses on the identification and management of financial stress. It covers early warning signals, evaluation of restructuring proposals, regulatory requirements, financial assessment, Techno-Economic Viability (TEV) studies, financial projections, operating-cost analysis, resolution plans, digital footprint analysis and documentation.
ECL transition calls for greater preparedness
Speaking at the launch, CMA Chittaranjan Chattopadhyay, President, ICMAI, said the transition to ECL would be an important development for the Indian banking sector and underlined the need for adequate preparedness among banks and other stakeholders.
He said ICMAI’s objective was to support professionals and institutions in understanding the practical dimensions of the framework and adapting to a more forward-looking approach to credit-loss recognition.
The discussions at the event highlighted that the ECL framework could strengthen the quality of credit assessment by encouraging financial institutions to identify and recognise potential credit losses at an earlier stage. Speakers also emphasised the importance of awareness among borrowers so that businesses facing temporary financial stress can better understand their options.
Supporting viable businesses through restructuring
The second handbook addresses the challenges faced by businesses when financial stress affects their ability to meet debt obligations.
Dr. P. Siva Rama Prasad, author of the publications and a former State Bank of India professional, said the handbook draws on his banking experience and seeks to address knowledge and communication gaps faced by SMEs, MSMEs, mid-sized companies and corporates approaching banks for restructuring.