Wednesday, July 18, 2007

ICRA, Indian Bank in ratings tie-up

ICRA Ltd and Indian Bank have signed a memorandum of understanding under which the former will rate the bank's loans and other exposures under the standardised approach of RBI's New Capital Adequacy Framework for Basel-II and also to small scale industries and small and medium enterprises.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI's above guideline.

The SSI ratings will be carried out under the National Small Industries Corporation-ICRA Performance and Credit Rating Scheme for SSIs. The SME ratings, on the other hand, will be assigned under the ICRA-SME Rating Scale.

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