{"url":"https://newsforagent.com/news/2026-10-24/bank-of-india-ecl-provisions-december-quarter","markdown_url":"https://newsforagent.com/news/2026-10-24/bank-of-india-ecl-provisions-december-quarter.md","title":"Bank of India to Start ECL Provisions in December Quarter","headline":"Bank of India Plans to Front-Load ECL Provisions From December Quarter Ahead of 2027 Rules","description":"Bank of India has made no ECL provisions yet and will start front-loading them from the December quarter.","section":"Earnings & Results","published_at":"2026-10-24T07:15:15+00:00","modified_at":"2026-10-24T07:15:15+00:00","author":"News Desk","key_takeaways":["Bank of India has made no provisions under the expected credit loss framework and plans to begin front-loading them from the December quarter.","The transition is expected to affect the bank's capital adequacy ratio by around 0.5% annually over four years.","Bank of India's CRAR stood at more than 17% as of September 30, against a regulatory requirement of 11%."],"companies":[{"name":"Bank of India","is_primary":true,"profile_url":null,"website":"https://www.bankofindia.co.in"}],"source":{"publisher":"NDTV Profit","title":"Bank Of India Has Made No ECL Provisions Yet. Here's When it Plans To Start","url":"https://www.ndtvprofit.com/markets/bank-of-india-q2-earnings-concall-lender-has-made-no-ecl-provisions-yet-heres-when-it-plans-to-start-12228702"},"other_sources":[],"tags":["Earnings & Results","Bank of India"],"body_markdown":"Bank of India has made no provisions under the expected credit loss framework yet and plans to begin front-loading them from the December quarter, Managing Director and CEO Rajneesh Karnatak said on the bank's post-results analyst call on October 23. [NDTV Profit](https://www.ndtvprofit.com/markets/bank-of-india-q2-earnings-concall-lender-has-made-no-ecl-provisions-yet-heres-when-it-plans-to-start-12228702) reported the comments. The framework takes effect from April 1, 2027.\n\n## Bank of India's ECL Preparations and Board Approval\n\nBank of India expects to make the provisions in the December and March quarters, ahead of the new framework's effective date. The bank is working on ECL-related calculations and technology requirements, with a consultant already onboarded. Karnatak said the bank would seek board approval for its preparedness and provisioning plan before beginning the exercise.\n\nThe bank has not disclosed the total amount of provisions it expects to make, saying it would give clearer guidance after the board reviews the plan. Karnatak said the bank expects to provide clearer ECL estimates during its December-quarter results presentation, after obtaining board approval.\n\nBank of India expects the transition to affect its capital adequacy ratio by around 0.5% annually over the next four years. Its CRAR stood at more than 17% as of September 30, against a regulatory requirement of 11%. The bank reported a net profit of more than Rs 6,000 crore in the first half of fiscal 2027 and expects full-year profit of around Rs 12,000 crore if the current run rate continues.\n\nManagement said improving credit monitoring and a decline in special mention account exposures could keep its ECL provisioning requirement at a manageable level. Karnatak said SMA accounts with exposure of Rs 5 crore and above had declined to Rs 2,553 crore from more than Rs 6,000 crore in September 2025. Executive Director P. R. Rajagopal said the bank had more than Rs 2,500 crore in provisions for bad and doubtful debts, compared with around Rs 1,500 crore a year earlier. Provisions for standard assets stood at around Rs 400 crore.\n\n## Bank of India's Recent Deals and Filings\n\nBank of India and C-DAC signed a memorandum of understanding on October 22, 2026, to develop indigenous quantum technologies for banking, focusing on cybersecurity and financial innovation, The Tribune reported. The bank filed its related party transaction statement for H1FY27 on October 23, 2026, with total transactions at ₹41,699.96 lakh, according to ScanX. On October 12, 2026, Bank of India declared Future Enterprises Ltd's outstanding account of ₹575.40 crore as fraudulent and reported it to the RBI, having made full provisions for the amount, CNBC TV18 reported.\n\n## Bank of India's December Quarter Guidance\n\nBank of India expects to provide clearer ECL estimates during its December-quarter results presentation, after obtaining board approval. The bank plans to make the provisions in the December and March quarters, ahead of the framework's April 1, 2027 effective date.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}