BoB, SMERA ink MoU for rating SME units
Mumbai, Feb 22 (UNI) PSB major Bank of Baroda (BoB) which is targeting a 30 per cent advances per annum to the small and medium enterprises (SMEs) segment, has inked an MoU with the SME Rating Agency of India Limited (SMERA).
According to a release here today, the MoU is a comprehensive arrangement, which seeks to leverage the strengths of the rating services of SMERA and the financial services from BoB for the benefit of SME clients.
BoB has a large base of SME clients and is amongst the top lenders to this segment, said the release, adding that the bank expects that an external credit rating would greatly assist BoB in arriving at the risk premium leviable on the pricing to a constituent and make it attractive.
''This MoU would pave the way for SMERA in extending its services as an independent third-party assessment of the overall condition of the SMEs, which takes into account the financial position and several qualitative factors that have a bearing on the credit worthiness of SMEs,'' the release said.
Both would also strive to work towards creating awareness and popularise each other's products through workshops and seminars and depending upon requirements, also conduct and sponsor joint cluster studies with a focus on SMEs, stated the release.
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