City-based public sector unit Vijaya Bank, on Friday, signed an MoU with CRISIL to provide bank loan ratings to its corporate clients at a concessional fee. According to the MoU, the corporate customers of the Bank will be able to have their loan exposures rated by CRISIL.

Vijaya Bank is confident that by entering into MoU with the rating agency, their corporate clients will be encouraged to go for the credit rating, which will be mutually beneficial. As per Basel II norms, unrated corporate borrowers attract 100 per cent risk weight up to March 2008 and for the financial year 2008-09, the corporate borrowers with exposure of above Rs 50 crore will attract 150 per cent risk weight for capital charge and from April 2009, the corporate borrowers with exposure of above Rs 10 crore will attract 150 per cent risk weight for calculating capital charge of the Banks. 

Vijaya bank also announced that it has successfully raised Rs 300 crore through a private placement of Unsecured  Non Convertible Tier II Bonds.