ICRA Ltd

ICRA Ltd has informed that ICRA Ltd (ICRA) and Dena Bank have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Bank's loans and its other exposures under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II and also to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs).

In this regard the Company has issued the following press release:

"ICRA Ltd (ICRA) and Dena Bank have signed a Memorandum of Understanding (MOU) under which ICRA will assign ratings to the Bank's loans and its other exposures under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II and also to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs).

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable Dena 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 above guideline.

The SSI ratings will be carried out under the National Small Industries Corporation - ICRA (NSIC - ICRA) Performance and Credit Rating Scheme for SSIs. The SME ratings on the other hand will be assigned under the ICRA-SME Rating Scale.

To assist potential and existing borrowers of Dena Bank in obtaining ratings, ICRA is offering special terms to the clients of Dena Bank covered by the MoU.

The MoU between ICRA and Dena Bank seeks to deliver a number of benefits to the Dena Bank as well its clients. For Dena Bank, ICRA's Line of Credit ratings would assist in implementing RBI's New Capital Adequacy Framework under Basel-II."