ICRA to assign ratings to PNB's SSI, SME borrowers

Credit rating agency ICRA has signed a memorandum of understanding (MoU) with Punjab National Bank to assign ratings to banks' small enterprises, small scale industries and small and medium enterprises borrowers.
"For PNB, the ratings would serve as an objective and scientific input in decision making, and provide assistance in risk pricing, besides acting as an input in the setting of collateral requirements for borrowers, and facilitating future deals involving collateralised bond and loan obligations (CBOs and CLOs)," ICRA said in a release today.
It further said that PNB borrowers would be able to obtain ICRA ratings at a relatively low cost.

The rating may also place the rated entity in a superior position to possibly obtain competitive credit terms from PNB and the benefit of faster loan processing, the release said.