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Credit rating agency ICRA is witnessing an increase in non-financial grading this fiscal, its Senior Group Vice President, Mr Jayanta Chatterjee, said.
Stating that the current trend signalled wider acceptance to the concept of grading itself, he said the agency recently launched a product for property grading and another for grading of engineering colleges and universities (ECU).
“ECU is not accreditation but a grading service. It aims to promote standardisation of infrastructure and practices within the engineering education institutes and address the perceived need among students and other stakeholders for an informed, reliable and independent opinion on the quality of education imparted by the institution,” Mr Chatterjee told Business Line .
He said ICRA was in the process of grading eight educational institutions, mostly in the western region of India and a few in Karnataka.
Foresees huge biz
He conceded that credit rating was still being perceived as a ‘regulation driven' exercise and the agency foresaw huge business prospects for growth in Coimbatore region.
“There is an increase in the number of companies that are looking to get themselves rated for their bank facilities under the Basel-II framework. We have rated over a 100 companies across verticals such as spinning and apparel manufacture, auto component and foundries, gem and jewellery, banking and finance and a unit engaged in seed production in this region,” he said naming a couple of entities such as Emerald Jewel, Sakthi Finance, Indsil Group, SP Apparels, Anugraha Valves, KG Group, Ambika Cotton Mills Ltd, L.G. Balakrishnan & Bros Ltd, Rajshree Sugars & Chemicals Ltd, Precot Meridian Ltd, Super Spinning Mills Ltd, Shanthi Gears, Rasi Seeds etc, the agency had rated in recent months.
Demand & supply gap
On grading of healthcare institutions, he said, “currently India faces a wide gap between the demand for and supply of healthcare services. With increased private/voluntary participation (in healthcare) and health insurance gaining popularity, the industry is undergoing transformation.”
“The emerging picture calls for enhancements in quality and productivity among other things. Our grading product is designed to evaluate technical and interpersonal care besides evaluating a host of factors such as infrastructure, equipment, manpower, systems and clinical algorithms,” he added.
To a query on the talent pool at ICRA, he said “resource is an issue. We have 40 analysts in the South and the cost is on the rise – up 7-8 per cent. Since our recruiting standards are high, we do not compromise on cost.”
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