New Delhi, Aug 18: The Institute of Cost Accountants of India (ICMAI) on Tuesday launched two professional handbooks on Expected Credit Loss (ECL) and restructuring of bank loans, aimed at helping banks, borrowers, MSMEs and finance professionals prepare for the Reserve Bank of India’s ECL framework coming into effect from April 1, 2027.
The launch was attended by CMA Chittaranjan Chattopadhyay, President, ICMAI; CMA Manoj Kumar Anand, Vice-President, ICMAI; CMA Harshad Deshpande, Chairman, BFSI Board, ICMAI, who joined online; CMA Puneet Jain, Director, NIPSCOM; Dr. P. Siva Rama Prasad, author of the publications; and Dr. Ramjas Yadav, former Executive Director, Bank of Baroda. CMA M. K. Mohan Tanksale, former Chairman and Managing Director of Central Bank of India and former Chief Executive of the Indian Banks’ Association, also addressed the event online.
The publications — Expected Credit Loss (ECL) Framework: A Practical Handbook for Indian Banks and Handbook on Restructuring of Bank Loans — have been developed as practical reference resources for bankers, CMAs, corporate borrowers, MSMEs and other stakeholders navigating changes in credit assessment and stressed-loan management.
The ECL handbook explains key aspects of the new framework, including Stage 1, Stage 2 and Stage 3 classification, Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), forward-looking macroeconomic factors, data requirements, model development and validation, technology and automation, accounting, audit, disclosure and transition strategies. It also includes case studies and practical illustrations.
The Handbook on Restructuring of Bank Loans focuses on the identification and management of financial stress. It covers early warning signals, evaluation of restructuring proposals, regulatory requirements, financial assessment, Techno-Economic Viability (TEV) studies, financial projections, operating-cost analysis, resolution plans, digital footprint analysis and documentation.
ECL transition calls for greater preparedness
Speaking at the launch, CMA Chittaranjan Chattopadhyay, President, ICMAI, said the transition to ECL would be an important development for the Indian banking sector and underlined the need for adequate preparedness among banks and other stakeholders.
He said ICMAI’s objective was to support professionals and institutions in understanding the practical dimensions of the framework and adapting to a more forward-looking approach to credit-loss recognition.
The discussions at the event highlighted that the ECL framework could strengthen the quality of credit assessment by encouraging financial institutions to identify and recognise potential credit losses at an earlier stage. Speakers also emphasised the importance of awareness among borrowers so that businesses facing temporary financial stress can better understand their options.
Supporting viable businesses through restructuring
The second handbook addresses the challenges faced by businesses when financial stress affects their ability to meet debt obligations.
Dr. P. Siva Rama Prasad, author of the publications and a former State Bank of India professional, said the handbook draws on his banking experience and seeks to address knowledge and communication gaps faced by SMEs, MSMEs, mid-sized companies and corporates approaching banks for restructuring.
He said disruptions arising from factors such as geopolitical developments and the COVID-19 pandemic had contributed to financial stress for several businesses. The handbook aims to provide practical guidance on restructuring so that viable businesses can continue operations rather than moving directly towards non-performing assets.
ICMAI officials said the publication is not intended to replace existing banking processes, but to improve awareness among entrepreneurs and borrowers about the mechanisms and options available when businesses experience financial difficulties.
CMAs emerging as key partners in banking
The launch also highlighted the expanding role of Cost and Management Accountants in the banking and financial services sector.
CMA Manoj Kumar Anand, Vice-President, ICMAI, said banks were increasingly recognising the importance of cost professionals as financial institutions focus on cost efficiency, operational performance and profitability.
He said CMAs can contribute beyond traditional accounting functions in areas such as cost optimisation, credit analysis, risk management, budgeting, performance evaluation and strategic decision-making.
ICMAI also called for greater institutional focus on cost governance in banking and suggested that banks consider dedicated cost-focused positions, including a Chief Cost Compliance Officer, to strengthen cost control and accountability.
Focus on capacity building and emerging banking risks
CMA Puneet Jain, Director, NIPSCOM, said four ECL training programmes had already been conducted in association with ICMAI, with further programmes planned to support capacity building among banking professionals.
ICMAI’s BFSI-focused programmes cover credit management, treasury and international banking, concurrent audit, and the three major banking risks — credit, operational and market risk.
The institute is also strengthening its focus on financial technology and has introduced an Advanced Certificate Course on FinTech for graduates and professionals, including MBAs, CAs and CMAs, in response to the growing role of technology in banking and financial services.
ICMAI also highlighted the growing participation of banks and financial institutions in its campus placement programme, with nearly 1,000 successful placements recorded during the last year.
Participating organisations included ICICI Bank, Cosmos Co-operative Bank, Saraswat Co-operative Bank, Karur Vysya Bank, Power Finance Corporation, Indian Renewable Energy Development Agency, Shriram Finance, Bajaj Finserv, HSBC Bank and CSB Bank, among others.
ICICI Bank recruited more than 250 CMA professionals, while Cosmos Co-operative Bank recruited more than 80 CMAs. The highest CTC reported through the placement programme was ₹36 lakh per annum, while the average CTC ranged between ₹12 lakh and ₹14 lakh per annum.
The institute said the participation of banks and financial institutions reflected the growing demand for CMAs in financial management, cost management, credit analysis, risk management and strategic decision-making.
The launch brought together professionals from ICMAI, banking and financial services, professional education and the media to discuss the upcoming ECL transition, effective management of stressed loans and the evolving contribution of CMAs to India’s banking and financial ecosystem.
ICMAI said stronger credit assessment, cost governance and restructuring of viable stressed businesses can together support greater financial discipline and contribute to a more resilient banking sector.