Central Bank of India, ICRA sign MoU

Mumbai, Mar 17: Credit rating agency ICRA Limited (ICRA) and Central Bank of India (Central Bank) have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Bank's loans and its other exposures under the standardised approach of RBI's New Capital Adequacy Framework for Basel-II.

The ratings for the standardised approach would be carried out under its ''Line of Credit'' rating service and would enable Central Bank 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 guidelines, a ICRA release issued here stated. To assist potential and existing borrowers of Central Bank in obtaining ratings, ICRA was offering special terms to the clients of Central Bank covered by the MoU. The MoU between ICRA and Central Bank sought to deliver a number of benefits to the Central Bank as well as its clients. For Central Bank, ICRA's Line of Credit ratings would assist in implementing RBI's New Capital Adequacy Framework under Basel-II, the release added.

UNI