ICRA sign MoU with SBI to rate Bank Loans

Credit rating agency ICRA Ltd (ICRA) and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Bank's loans and its other exposures under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable SBI 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 above guideline.

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

The MoU between ICRA and SBI seeks to deliver a number of benefits to the SBI as well its clients. For SBI, ICRA's Line of Credit ratings would assist in implementing RBI's New Capital Adequacy Framework under Basel-II.

The stock was trading at Rs.997.10, up by Rs.25.80 or 2.66%. The stock hit an intraday high of Rs.1012.80 and low of Rs.969. The total traded quantity was 93624 compared to 2 week average of 43778.

Source : Equity Bulls

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