Credit rating agency ICRA and IndusInd Bank (IB) have signed an agreement under which ICRA would assign ratings to IB's loans under the Reserve Bank of India's (RBI) New Capital Adequacy Framework for Basel-II.
ICRA's ratings for the standardised approach would be carried out under its "line of credit" service and would enable IB to assign the new risk weights applicable to its borrowers under Base-II. The risk weights would be linked to various rating categories and would be as per the RBI guidelines.
The agreement between ICRA and IB would usher in a lot of benefits to both IB and its clients. Additionally, ICRA's line of credit ratings would help IB to implement RBI's New Capital Adequacy Framework for Basel-II, ICRA informed the Bombay Stock Exchange in a statement.
