Indian Overseas Bank ropes in ICRA for rating loans

12 Sep 2007

1

Mumbai: Chennai-based Indian Overseas Bank (Bank), a premier nationalised bank, has signed a memorandum of understanding (MoU) with ICRA Ltd under which the latter will assign ratings to the bank''s loans and its other exposures under the standardised approach of RBI''s new capital adequacy framework, Basel-II.

ICRA would carry out the ratings under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II, ICRA informed the Bombay Stock Exchange (BSE) in a filing.

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

The MoU seeks to deliver benefits to the bank as well its clients. For the bank, ICRA''s line of credit ratings would assist in implementing the Basel-II capital adequacy norms. For the client, 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.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more