Allahabad Bank signed a memorandum of understanding with Brickwork Ratings (BWR) for the promotion of credit-ratings of the bank's MSE (micro and small enterprises) borrowers and potential customers. The tie-up would enable the existing and new borrowers to avail easy, fast and hassle-free loans from the bank at a concessional rate of interest, according to a press release issued by the bank.
The tie up would also enable the bank to take prompt and appropriate credit decisions and manage credit risk properly as it can get an independent third party opinion on capabilities and credit worthiness of MSE borrowers. Allahabad Bank already has tie-ups with three other credit-rating agencies — SMERA, CRISIL and ONICRA. The bank's loan portfolio to the MSE sector stood at Rs 13,666 crore as on June 30, 2011.