Investment Information Credit Rating Agency ICRA Limited (ICRA) has signed a Memorandum of Understanding (MoU) with Karnataka Bank Ltd. 

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

The MoU between ICRA and Karnataka Bank Ltd would assist in implementing RBI's New Capital Adequacy Framework under Basel-II.