Canara Bank says RBI's risk weight easing on housing, MSMEs may offset its Rs 10,000 Cr ECL burden

Canara Bank expects recent regulatory easing on risk weights for housing loans, MSMEs and corporate exposures to cushion the impact of the upcoming Expected Credit Loss (ECL) framework, which the lender estimates could require around Rs 10,000 crore in additional provisioning. “The ECL impact will be offset by release of some additional provisioning because relaxation has been given on housing, rated corporate and MSME risk weights,” MD & CEO designate Hardeep Singh Ahluwalia told ETBFSI.