ICRA and Vijaya Bank have signed a memorandum of understanding (MoU) to this effect, the company said in a filing to Bombay Stock Exchange.
Basel-II norms stipulate banks to assess credit, market and operations risks and make higher provisions for covering these risks.
ICRA's ratings for the standardised approach would be carried out under its 'Line of Credit' rating service and would enable Vijaya Bank 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 guidelines, the filing added.
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To assist potential and existing borrowers of Vijaya Bank in obtaining ratings, ICRA is offering special terms to the clients of Vijaya Bank covered by the MoU.
Shares of the company were trading unchanged from its previous close at Rs 621.05 on Bombay Stock Exchange.
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