Post fund infusion, ICRA revises rating for 6 PSBs

Post fund infusion, ICRA revises rating for 6 PSBs

1. Credit Rating agency,ICRA has revised the outlook of six public sector banks,of which five are positive revisions.The ratings were revised after the capital infusion in these banks by the government.
2. Earlier,RBI had also removed them from Prompt Corrective Action (PCA) after the infusion of capital in these banks.PCA is a process or mechanism to ensure that banks don’t go bust.Under it,RBI has put in place some trigger points to assess,monitor,control and take corrective actions on banks which are weak and troubled.
3. ICRA was created in 1991 by prominent financial institutions and commercial banks in India with a devoted crew of experts for the MSME sector.Moody’s which is the International credit rating agency holds the major share in ICRA.
4. A credit rating agency (CRA) is a company that rates debtors on the basis of their ability to pay back their interests and loan amount on time and the probability of them defaulting.Credit rating agencies in India came into existence in late 1980s.Some of the credit rating agencies registered under SEBI are:(a)CRISIL (b)ICRA (c)CARE and (d)Fitch India.