Kolkata, Dec 26 (KNN) The small and medium enterprises (SMEs), which are borrowers of Punjab National Bank (PNB) will be rated by the credit rating agency ICRA limited at a relatively lower cost, a move which is likely to deliver a number of benefits to the bank as well the SMEs.
 
ICRA has signed a memorandum of understanding (MoU) with state-run lender PNB for assigning ratings to banks' small enterprises, small scale industries and SME borrowers.

"For PNB, the ratings would serve as an objective and scientific input in decision making, and provide assistance in risk pricing, besides acting as an input in the setting of collateral requirements for borrowers, and facilitating future deals involving collateralised bond and loan obligations (CBOs and CLOs)," the rating agency said in a release.

It further said that PNB borrowers would be able to obtain the ratings at a relatively low cost.

The rating may also place the rated entity in a superior position to possibly obtain competitive credit terms from PNB and the benefit of faster loan processing, the release said.
 
 The SE/SSI ratings will be carried out under the National Small Industries Corporation-ICRA (NSIC-ICRA) Performance and Credit Rating Scheme for SSIs.
 
The SME ratings, on the other hand will be assigned under the ICRA-SME Rating Scale. “To assist potential and existing SE/SSI and SME borrowers of PNB in obtaining ratings, ICRA is offering special terms to borrowers covered by the MoU,” according to the release. (KNN/SD)