While it may not be possible to precisely quantify the impact of Ind AS implementation at this stage, rough estimates globally indicate a transitional impact of 25–50% increase in provisioning levels on account of implementation of ECL based provisioning framework.
However, such positive effects of the fiscal policy may be weakened, if the ongoing rapid deterioration in employment and income conditions further dampens the overall economic activities. Therefore, the overall economic activities, including corporate and household confidence, should be carefully monitored.