Risk and finance functions are evolving rapidly as organisations navigate economic uncertainty, regulatory change, digital disruption and increasing stakeholder expectations. Today, finance and risk leaders are expected not only to ensure compliance and governance, but also to drive strategic decision-making, operational efficiency and long-term value creation.
KPMG in India's Risk and Finance Advisory practice supports organisations in building integrated, future-ready finance and risk capabilities. Leveraging deep expertise in financial reporting, finance transformation, regulatory compliance, financial risk management, governance and technology-enabled solutions, we help businesses improve performance, strengthen resilience and respond confidently to change.
From modernising finance functions and enhancing risk management frameworks to strengthening financial reporting and responding to evolving regulations, we help organisations unlock greater value through practical, outcome-driven solutions and data-informed decision-making.
Our offerings
Our enabling pillars
Driving growth with Risk and Finance trends
- Implications of the RBI's ACPIR framework
- Digital transformation and scale in Indian banking
- KPMG at The CFO Board
- Bank CFO Meet
- The CFO Board’s Risk Roundtable
- Accelerating AI with managed services
- Rajosik Banerjee
- Amitava Mukherjee
- Somdeb Sengupta
- Venkateswaran Narayanan
The true impact of ECL goes far beyond finance and accounting. It will reshape business models, ICAAP, ALM, portfolio strategy, and regulatory compliance, compelling banks to embed risk thinking into every layer of decision-making.
The new regulations should not be looked as mere change in provisioning norms - it gives financial institutions a powerful tool for forward looking decision making. Making informed choices at every stage of customer lifecycle - origination to collections as well as nuanced portfolio strategy can give banks real competitive advantage.
Venkateswaran Narayanan
Partner, Finance Advisory
KPMG in India
After a decade of submitting proforma Ind AS financial statements to the Reserve Bank of India (RBI), banks in India are set to implement ECL & EIR from FY 2027-28. The implementation of ECL & EIR presents the opportunity to harmonise financial, risk & regulatory reporting in the areas of provisioning, credit risk management & periodic regulatory submissions. The implementation is expected to have a lot of rigor in the areas of data, process & governance as these will be subject to audit.
As global banking leaders respond to rising operational and regulatory costs by pursuing scale and strategic M&A, the same imperative is increasingly shaping the Indian banking sector. For India, scale is not just about size - it is a catalyst for expanding distribution, accelerating digital transformation and enhancing cost efficiency. As banks deepen their investments in technology and modernize their operating models, selective consolidation and partnership‑led growth can unlock new markets, strengthen value propositions and build long‑term competitive resilience in a fast‑evolving financial ecosystem.
Operational excellence is won in the middle office. This is where strategy becomes execution and where critical capabilities such as R&D, risk, data and compliance come together. When the middle office is weak, organisations face fragmentation and slow decision-making. When it is strong, it aligns core processes to business priorities and enables the organisation to move with speed and clarity.
Targeted investment in the middle office strengthens innovation, improves control and creates a stable platform for growth. It allows client-facing teams to perform at their best and operational teams to deliver with consistency. A disciplined, well-run middle office is not a support function. It is a competitive advantage.
- Rajosik Banerjee
- Ritesh Goyal
Practical challenges and industry readiness
Embracing the new RBI directions for asset classification, provisioning, and income recognition is crucial for our financial stability.. By implementing forward-looking Expected Credit Loss (ECL), robust control frameworks, and mandatory disclosures, we are setting the stage for a resilient and transparent banking system. Emphasis lies in high quality granular data, consistent definitions, appropriate modeling, aligning relevant system and operations which will be key to the implementation.
Ritesh Goyal
Partner, Audit-FS
KPMG in India
Navigating RBI's ECL draft circular, insights, challenges and opportunities
RBI’s Expected Credit Loss (ECL) draft directions highlight a significant move from the incurred-loss model to a forward-looking provisioning framework.
Key takeaways:
- Regulatory intent – Strengthening credit risk management, aligning with global best practices, and driving greater transparency in financial reporting.
- Industry view – A welcome transition from delayed risk recognition under IRACP norms to predictive models leveraging PD, LGD, and EAD for early detection and resilience.
- Clarifications awaited – Treatment of comparative periods for disclosures, calibration of prudential floors and governance for model validation, to name a few.
Despite challenges in data readiness, model risk management, SICR assessment for legacy portfolios, and capital impact during transition confidence remains high as institutions gear up for this transformation. This shift also opens new opportunities: enhanced capital planning, improved risk sensitivity, and global comparability.
One clear takeaway is that ECL is not just about compliance—it’s a strategic evolution toward resilience and proactive risk management.
Geopolitical shifts are forcing CFOs to rethink supply chain architecture. From satellite facilities to optionality in logistics, the focus is shifting from scale to agility. CFOs must lead with long-term commitment, especially in volatile global environments. India’s strength won’t come from competing on cost; it will come from engineered products, process innovation and logistics. Risk management, scenario planning and treasury coordination are now central to financial leadership.
Maneesha Garg
Partner & Head – Managed Services, Forensic, F&A, HR, Learning, Insight Led sales, Digital business operations and Sourcing
KPMG in India
As AI becomes central to enterprise transformation, organisations in India today are now eager to move from pilots to production, while managing legacy systems, scarce skills, and escalating cyber risk. Managed Services are fast evolving from a support function into a strategiv foundation, with AI-led scaling and transformation.
By integrating new technologies with existing platforms, strengthening data and AI governance, and bringing deep domain expertise, managed services offer a space where Indian organisations can accelerate value creation, through focus on mission-critical processes, and build sustainable, future-ready business innovation, while maintaining the resilience and discipline required to operate at scale.
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