ICRA's ratings for the standardized approach would be carried out under its line of credit rating service and would enable Karnataka 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 basel II guidelines.
To assist potential and existing borrowers of Karnataka Bank in obtaining ratings, ICRA is offering special terms to the clients of Karnataka Bank. The MoU between ICRA and Karnataka Bank would assist in implementing RBI's new capital adequacy framework under basel-I.
The company made this announcement after the trading hours on Tuesday, 07 September 2008.
