Axis Bank expects the new Expected Credit Loss (ECL) framework proposed by the Reserve Bank of India (RBI) to have a negligible immediate impact on its financials, even as the industry begins assessing the implications of the transition.

CFO Puneet Sharma said the only likely effect is a shift in provisioning from outstanding to exposure, and on the bank’s net worth basis at the transition date, the impact is expected to be minimal. He added that while the bank is preparing pro forma financials internally, it will wait for the final contours of the circular before providing a detailed assessment.

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The RBI draft, released recently, proposes moving from the current incurred loss model to an ECL-bas

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