ICRA's ratings for the standardized approach would be carried out under its line of credit rating service and would enable State Bank of Hyderabad 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.

To assist potential and existing borrowers of State Bank of Hyderabad in obtaining ratings, ICRA is offering special terms to the clients of State Bank of Hyderabad. The MoU between ICRA and State Bank of Hyderabad would assist in implementing RBI's new capital adequacy framework under basel-II.