Monday, March 24, 2008

MoU signed by CARE and State Bank of Bikaner and Jaipur

A memorandum of understanding (MoU) was signed between Credit Analysis & Research (CARE) and State Bank of Bikaner and Jaipur, according to which the bank may advise clients to get their facilities rated under Basel II framework. The ratings will be carried out after obtaining mandates from the bank’s clients / prospective clients, at a special discounted rate.

The Basel II framework specifies a system of graded risk weights for capital adequacy determination of banks. The Reserve Bank of India has recognized CARE as an eligible rating agency for this purpose.

A similar MoU has been signed by CARE with few other banks including State Bank of India, Indian Bank, Indian Overseas Bank, UCO Bank, Allahabad Bank.

State Bank of Bikaner and Jaipur is an associate bank of State Bank of India, and had an asset base of Rs 34,507 crore as on March 31, 2007.

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