Bangalore, Mar 14: Public sector Vijaya Bank today signed a Memorandum of Understanding with rating agency CRISIL to provide bank loan ratings to its corporate clients at a concessional fee. According to the MoU, the corporate customers of the bank would be able to have their loan exposures rated by CRISIL.
The bank, in a release here, said it was confident that by entering into an MoU with the rating agency, its corporate clients would be encouraged to go for credit rating, which would be mutually beneficial. As per Basel II norms, unrated corporate borrowers attract 100 per cent risk weight up to March and for the financial year 2008-09, the corporate borrowers with exposure of above Rs 50 crore would attract 150 per cent risk weight for calculating capital charge of the bank.
From April next year, corporate borrowers with exposure of above Rs 10 crore would attract 150 per cent risk weight for calculating capital charge, the release said.