Investment Information Credit Rating Agency ICRA Limited (ICRA) has informed that it has signed a Memorandum of Understanding (MoU) with Public sector Vijaya Bank.

Under the arrangement, ICRA will assign ratings to the Bank's loans and its other exposures under the standardized approach of RBI's New Capital Adequacy Framework for Basel-II.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit rating service and would enable Vijaya Bank to assign the new risk weights applicable to its borrowers under Basel-II.

However, the risk weights would be linked to the various rating categories and would be as per RBI's Basel II guidelines.