ICRA in MOU with State Bank of Travancore
Tuesday, February 26th, 2008ICRA Ltd has informed BSE that ICRA Ltd (ICRA) and State Bank of Travancore have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Bank’s loans and its other exposures under the standardized approach of RBI’s New Capital Adequacy Framework for Basel-II.
In this regard the Company has issued the following press release:
“Credit rating agency ICRA Ltd (ICRA) and State Bank of Travancore have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Bank’s loans and its other exposures under the standardized approach of RBI’s New Capital Adequacy Framework for Basel-II.
ICRA’s ratings for the standardized approach would be carried out under its “Line of Credit” rating service and would enable State Bank of Travancore 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 RBI’s Basel II guidelines.
To assist potential and existing of borrowers of State Bank of Travancore in obtaining ratings, ICRA is offering special terms to the clients of State Bank of Travancore.
The MoU between ICRA and State Bank of Travancore would assist the Bank in implementing RBI’s New Capital Adequacy Framework under Basel-II.