SBT signs MoU with four credit rating agencies

State Bank of Travancore (SBT) has signed a memorandum of understanding (MoU) with four credit rating agencies identified by Reserve Bank of India (RBI) i.e. ICRA, Fitch, Credit Analysis and Research Ltd. (CARE) and Credit Rating and Information Services of India Ltd. (Crisil).

The MoU is a move to rate bank loans under the RBI's new capital adequacy framework.

The rating agencies will assign ratings to the bank's loans and its exposure under the standardised approach of the RBI's new framework for Basel-II (recommendations and regulations for banks). The ratings will enable the bank to assign new risk weights, which will be linked to the various rating categories as per RBI's Basel-II guidelines.