ICRA, Dena Bank inks MoU to rate bank loans

New Delhi, Sept 21: Credit rating agency ICRA Ltd today said it has entered into a Memorandum of Understanding (MoU) with Dena Bank for assigning ratings to the bank's loans and its other exposures.

Under the agreement, ICRA will rate the bank's loans and its other exposures under the standardised approach of RBI's New Capital Adequacy Framework for Basel-II and also to small scale industries (SSIs) and small and medium enterprises (SMEs).

ICRA's ratings for the standardised approach will be carried out under its 'Line of Credit' rating service and will enable Dena Bank to assign the new risk weights applicable to its borrowers under Basel-II.

The risk weights will be linked to the various rating categories and will be as per RBI's above guideline.

The SSI ratings will be carried out under the National Small Industries Corporation - ICRA (NSIC-ICRA) Performance and Credit Rating Scheme for SSIs. While SME ratings will be assigned under the ICRA-SME Rating Scale, a statement said.

ICRA is offering special terms to the clients of Dena Bank covered by the MoU to assist potential and existing borrowers of Dena Bank in obtaining ratings.

UNI