ICRA Ltd will assign ratings to Kolkata-headquartered UCO Bank''''s loans and its other exposures under the standardised approach of the Reserve Bank of India''''s new capital adequacy framework for Basel-II.
ICRA''''s ratings for the standardised approach would be carried out under its "line of credit" rating service and would enable UCO Bank to assess 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 the Bank in obtaining ratings, ICRA is offering special terms to the clients of the Bank covered by the MoU.
For UCO Bank, ICRA''''s line of credit ratings would assist in implementing RBI''''s new capital adequacy framework under Basel-II. For UCO Bank''''s borrowers, an ICRA rating may place the rated entity in a superior position in terms of faster loan processing and to obtain competitive credit terms from the Bank."