Tuesday, February 19, 2008

Punjab National Bank signed MoU with Fitch Ratings India for bank loan ratings

A Memorandum of Understanding was signed between Public sector lending Punjab National Bank and Fitch Ratings India for bank loan ratings.

According to the agreement the rating agency will assign ratings to the bank's loans and its other contacts will be extended to both its existing and potential borrowers.

Fitch released a statement in which it said as per the standardized approach of RBI's new Capital Adequacy Framework for Basel II, loan ratings would allow the bank to assign the new risk weights applicable to its borrowers.

The risk weights would be linked to the various rating categories and would be in line with Basel II guidelines.

Fitch Ratings is having similar agreement with other nationalized banks, including State Bank of India, Allahabad Bank, Bank of Maharashtra, Corporation Bank, Dena Bank and Indian Bank.

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