This MoU will facilitate current and potential borrowers of UCO Bank to obtain Loan Ratings from CARE in the context of Basel II implementation in India. Besides, UCO Bank customers will benefit from the rating exercise at a special discounted rate.
The Basel II framework stipulates a system of graded risk weights for capital adequacy determination of banks in line with credit ratings awarded by eligible credit rating agencies in India under the standardised approach.
CARE has been recognized as an eligible rating agency for this purpose by RBI. It has entered into similar MOUs with few other banks including State Bank of India, Indian Bank, Indian Overseas Bank, etc. It has already commenced work on Bank Loan ratings under Basel II and completed a few rating assignments so far.
