INSUBCONTINENT EXCLUSIVE:
by Rahul SatijaIndia delayed the introduction of tough new accounting rules for the second year running, in a move that will spare the
that legislative amendments needed to implement the new Indian Accounting Standards are still under consideration by the government
website.
The new rules -- based on the IFRS9 standards created in the aftermath of the financial crisis -- were supposed to kick in at the
start of the new fiscal year that starts on April 1, after being delayed last year
($16 billion) in the fiscal first quarter ending June 30 if the rules had gone ahead.
That would have forced public sector lenders to raise
implementation of the new standards a few days into the start of the current fiscal year, citing the need for legal changes and more
The new accounting standards would require banks to make provisions when they judge that a loan is likely to sour, rather than waiting for
the borrower to start missing payments.
The impact on Indian banks as a whole would have been less this year than last, said Parthasarathi
Indian banks have taken hefty provisions and write-offs in past years, and there are early signs that asset quality is improving, Mukherjee
