Publications offer practical guidance on ECL implementation and stressed-loan resolution for banks, borrowers, MSMEs and finance professionals
New Delhi: The Institute of Cost Accountants of India (ICMAI) on Tuesday launched two professional handbooks focused on Expected Credit Loss (ECL) and bank loan restructuring to help banks, borrowers, MSMEs and financial professionals prepare for the Reserve Bank of India’s ECL framework, scheduled to take effect from April 1, 2027.
The publications, Expected Credit Loss (ECL) Framework: A Practical Handbook for Indian Banks and Handbook on Restructuring of Bank Loans, were launched in the presence of ICMAI President CMA Chittaranjan Chattopadhyay, Vice-President CMA Manoj Kumar Anand, BFSI Board Chairman CMA Harshad Deshpande, Director, NIPSCOM CMA Puneet Jain, author Dr. P. Siva Rama Prasad and former Bank of Baroda Executive Director Dr. Ramjas Yadav. Former Central Bank of India Chairman and Managing Director and former Indian Banks’ Association Chief Executive CMA M. K. Mohan Tanksale also addressed the event online.
The ECL handbook covers key elements of the new credit-loss framework, including Stage 1, Stage 2 and Stage 3 classification, Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), macroeconomic factors, data requirements, model development, validation, technology, accounting, audit, disclosures and transition planning. Case studies and practical examples have also been included.
The second handbook focuses on identifying and managing financial stress among borrowers. It examines early warning indicators, restructuring proposals, regulatory requirements, financial analysis, Techno-Economic Viability (TEV) studies, projections, operating-cost assessment, resolution plans, digital footprint analysis and documentation.
ECL transition requires preparedness
Addressing the launch, ICMAI President CMA Chittaranjan Chattopadhyay said the shift to ECL would mark a significant change for the Indian banking sector. He stressed the need for banks and other stakeholders to prepare adequately for the transition.
He said ICMAI aims to help institutions and professionals understand the practical aspects of the framework and move towards a more forward-looking system of recognising credit losses.
Speakers at the event noted that ECL could improve credit assessment by enabling financial institutions to identify potential losses earlier. They also highlighted the need to improve awareness among borrowers and businesses experiencing temporary financial difficulties.
Restructuring to support viable businesses
Dr. P. Siva Rama Prasad, author of both publications and a former State Bank of India professional, said the restructuring handbook was developed from his banking experience and addresses information and communication gaps faced by SMEs, MSMEs and corporates seeking restructuring support.
He noted that geopolitical disruptions and the COVID-19 pandemic had created financial stress for many businesses. The handbook seeks to provide practical guidance that can help viable businesses continue operations instead of progressing towards non-performing asset status.
ICMAI clarified that the handbook is not a substitute for established banking procedures but is intended to improve awareness among borrowers and entrepreneurs about restructuring mechanisms and available options.
Growing role of CMAs in banking
The event also highlighted the expanding role of Cost and Management Accountants in banking and financial services.
CMA Manoj Kumar Anand said banks were increasingly recognising the contribution of cost professionals as they focus on efficiency, profitability and operational performance. According to him, CMAs can support functions including cost optimisation, credit analysis, risk management, budgeting, performance assessment and strategic decision-making.
ICMAI also called for stronger cost governance in banks and suggested considering dedicated positions such as Chief Cost Compliance Officer to improve cost control and accountability.
Training and capacity building
CMA Puneet Jain said ICMAI had already conducted four ECL training programmes in collaboration with the institute, with more initiatives planned for banking professionals.
The institute’s BFSI programmes cover areas such as credit management, treasury and international banking, concurrent audit, and credit, operational and market risks.
ICMAI has also introduced an Advanced Certificate Course on FinTech for graduates and professionals, including MBAs, CAs and CMAs, reflecting the increasing importance of technology in financial services.
The institute further highlighted growing participation by banks and financial institutions in its campus placement programme, with nearly 1,000 placements recorded during the previous 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.
ICICI Bank recruited more than 250 CMA professionals, while Cosmos Co-operative Bank hired over 80. The highest reported CTC was ₹36 lakh per annum, while the average CTC stood between ₹12 lakh and ₹14 lakh.
ICMAI said the growing participation of financial institutions demonstrates rising demand for CMAs in financial management, cost management, credit analysis, risk management and strategic functions.
The event brought together representatives from ICMAI, banks, financial institutions, professional education and the media to discuss ECL implementation, stressed-loan resolution and the evolving role of CMAs in India’s financial ecosystem.
