Mumbai: Rating agency ICRA Ltd today said it has entered into an agreement with Kolkata-based United Bank of India (UBI) to assign ratings to the bank s loans and other exposures.

The firm has entered into a Memorandum of Understanding (MoU) with UBI and the ratings would be assigned under the Reserve Bank of India's New Capital Adequacy Framework for Basel-II, it said in a filing to the Bombay Stock Exchange. Further, the ratings for the standardised approach would be carried out under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II.

Basel-II guidelines ensure the solvency of the bank as per international norms. In addition, the ratings would help the client in getting loans processed faster and also in obtaining competitive credit terms from the bank, the filing added. Shares of the company were trading at Rs 927, down 0.98 per cent in afternoon trade at BSE.

Source : PTI