BANKS WANT RBI TO DEFER INDAS ROLL-OUT OVER HIGHER LOAN-LOSS PROVISIONING – BUSINESS STANDARD
Banks would be required to prepare financial statements for the financial year beginning April 2019 as well as for the previous year for comparative purpose under IndAS.
Banks are seeking an extension for the roll-out of the Indian Accounting Standards (IndAS), set to come into effect from April 1.
They have cited higher capital for bad-loan provisioning, pending legislative amendments, and delay in finalising rules by the Reserve Bank of India (RBI) as some of the reasons. “The government has given capital to banks with great difficulty and banks are under pressure to improve their financials. IndAS will further add to banks’ compliance burden, especially for loan-loss provisions,” said the managing director of a public sector.