Muhurat Trading: PNB shares in focus after company flags Rs 9,000 crore hit from RBI credit loss rules
[hfe_template id='11223']
[ad_1]
Shares of Punjab National Bank (PNB) are expected to remain in focus during Muhurat Trading after the state-run lender said it will take an estimated Rs 9,000 crore hit as it transitions to the Reserve Bank of India’s new expected credit loss (ECL) framework by 2031. The disclosure makes PNB one of the first major public-sector banks to quantify the potential impact of the RBI’s proposed guidelines, which require lenders to make provisions for likely loan losses before defaults occur, rather than after. The new norms mark a significant shift from the current incurred-loss model and are aimed at strengthening India’s banking system against future credit shocks. “The impact comes to around Rs 9,000 crore,” said Ashok Chandra, managing director and CEO of PNB, in an interview with Reuters. “The bank has done a rough estimate as this new credit rule was already in the pipeline. I don’t see any further deviation.” Under the RBI’s draft framewo...