ICRA Ltd has informed that the Company and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) under which the Company will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II.
In this regard the Company has issued following Press Release:
Credit rating agency ICRA Ltd (ICRA) and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II.
ICRAs ratings for the standardized approach would be carried out under its Line of Credit rating service and would enable SBI to assign 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 RBIs above guideline.
To assist potential and existing borrowers of SBI in obtaining ratings, ICRA is offering special terms to the clients of SBI covered by the MoU.
The MoU between ICRA and SBI seeks to deliver a number of benefits to the SBI as well its clients. For SBI, ICRAs Line of Credit ratings would assist in implementing RBIs New Capital Adequacy Framework under Basel-II.
Saturday, September 8, 2007
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