ICRA to rate State Bank loans under RBI''s new capital adequacy norms for Basel-II
07 Sep 2007
ICRA
Ltd will assign ratings to State Bank of India''s loans and its other exposures
under the standardised approach of RBI''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 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 guideline.
To assist potential and existing borrowers of SBI in obtaining ratings, ICRA is offering special terms to the clients of SBI covered by a memorandum of understanding signed by the two.
The
MoU between ICRA and SBI seeks to deliver a number of benefits to the banks and
its clients.
