SBM inks MoU with ICRA to assign ratings

ICRA and State Bank of Mysore (SBM) have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the bank's loans and other exposures under the standardised approach of RBI's new capital adequacy framework for Basel-II.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable State Bank of Mysore 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 Basel II guidelines. ICRA will also offer special terms to the clients of State Bank of Mysore.