Karur Vysya Bank has informed that it has signed a Memorandum of Understanding (MoU) with leading credit rating agency, ICRA Limited.

Under the MoU, 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.

Karur Vysya Bank has to assign the new risk weights applicable to its borrowers under Basel-II. According to the lender, the risk weights would be linked to the various rating categories and would be as per RBI's Basel II guidelines.