Vijay Bank signs MOU with Fitch Ratings

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Bangalore, July 9(UNI) Vijay Bank, a public sector bank, today signed a Memorandum of Understanding (MoU) with Fitch Ratings India Pvt Ltd.,one of the RBI accredited rating agency, to provide bank loan ratings to its corporate clients at a concessional fee.

As per the terms of the MoU, the corporate customers of the bank would be able to have their loan exposures rated by Fitch, bank's press release said.

The release said the bank was confident that by entering into MoU with the rating agencies, their corporate clients would be encouraged to go for the Credit rating, which would be beneficial to the clients in pricing.

All the commercial Banks in India with international presence are moving towards Basel II norms compliance by now and other banks not having international presence, by March 2009. For the credit risk,the RBI has advised banks to apply the Standardised approach, accordingly banks have to assign capital charge based on external loan ratings. Earlier Vijay Bank had signed an MoU with CRISIL for providing rating services to its corporate customers.

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