ICRA In Mou With UCO Bank To Rate Bank Loans Under RBI''s New Capital Adequacy Framework For Basel-II

ICRA Ltd (ICRA) has informed that ICRA & UCO Bank (Bank), a premier nationalised bank headquartered in Kolkata, 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.

In this regard the Company has issued the following press release:

ICRA and UCO Bank (Bank), a premier nationalised bank headquartered in kolkata, 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 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 RBIs above guideline. To assist potential and existing borrowers of the Bank in obtaining ratings, ICRA is offering special terms to the clients of the Bank covered by the MoU.

The MoU between ICRA and the Bank seeks to deliver benefits to the Bank as well its clients. For the Bank, ICRAs Line of Credit ratings would assist in implementing RBIs New Capital Adequacy Framework under Basel-II. For the client, an ICRA rating may place the rated entity in a superior position in terms of faster loan processing and to obtain competitive credit terms from the Bank.