New Delhi: Bank of Rajasthan (BOR) has entered into Memorandum of Understanding (MoU) with credit rating agency ICRA Limited (ICRA) under which ICRA will assign ratings to the Bank’s corporate sector and public sector enterprises exposures under the standardized approach of RBI’s New Capital Adequacy Framework (Basel-II).
ICRA will carry out ratings under the standardized approach under its ‘Line of Credit’ rating service, which would enable BOR to assign risk weights under Basel-II linked to various rating categories, which would be as per RBI’s guideline on New Capital Adequacy Framework.
Existing and potential borrowers of BOR will be being offered special terms for obtaining ICRA ratings.
The Managing Director of the Bank, Shri P. L. Ahuja said: “MoU between BoR & ICRA will deliver a number of benefits to the BoR as well its clients. It would also help the Bank in implementing RBI’s New Capital Adequacy Framework under Basel-II & optimization of Bank’s capital requirement.”