Bank of Baroda signs memorandum of understanding with CARE Ratings

CHENNAI: public sector Baroda Bank has signed a contract with CARE for the credit quality of existing and potential clients in the small and medium-sized business (SME) segment.

Under this agreement, it will evaluate SMEs by processing and analyzing structured, unstructured and new data flows. In addition, it will indicate the relative credit quality of SMEs based on an eight-point scale, where 1 indicates the highest credit quality and 8, poor credit quality. The objective is to allow access to credit for SMEs taking advantage of their decades of experience in credit analysis.

Vikramaditya Singh Khichi, executive director, of Baroda, said, “ Baroda Bank has a strong SME book and we have special branches dedicated for SME lending. Our tie-up with CARE Rating will strengthen the evaluation process and enable growth of the SME lending business.”

Mehul Pandya, executive director, CARE Ratings, said, “Increased digitalisation of the economy, availability of new data sources such as GST, in addition to traditional financial data and non-traditional data sources, allow for new approach for grading of SMEs. This MOU with Baroda Bank is a step in this direction.”