ICRA: Aiding Credit Risk Analysis

9 December 2015 | 1225 Views | By Mint2Save

Every investor wants to ensure credibility of the institution with whom investment is made whether its in the form SIP or F.D. or R.D., stocks, debentures and so on, before making actual investment.

Since none of the financial institutions inviting investments shall show its weak points like financial stability, market acceptability & credibility of its promoters, past records, redeem ability and so on. On the contrary to it, every institution shall claim to be the best amongst all. Then, who will end the dilemma in favor of investor by drawing the real picture of the institution in words give real rating.

In 1991, some renowned/ prominent merchant bankers and financial institutions clubbed together and established an institute/agency who shall thoroughly study the financial conditions, credibility of its managers, promoters with their past records, bank statements, debts etc. its plans of investment, type of investments, mode of investment and their recovery and, so many other parameters before to determine and declare `rating` of an Institution inviting investments before the investors. They named it `Investment Information and Credit Rating Agency of India` or the “ICRA” .This , now, a public limited company has its shares listed on National Stock Exchange and Bombay Stock Exchange. It has been registered with govt. agency and has earned good name amongst and, faith of investors though out the nation.

To day, ICRA rates almost all types of investments like SIP, Loans, Fixed Deposits, Equity Linked Savings Schemes, Bonds, Debentures etc. and associating /tying up with agencies like MOODY of America and, diversified its field of business. It undertakes the tasks related to :

Credit Rating/Grading
Management Consulting
Software Solutions and Services and,
Information Services.

Here is a screen shot taken from the ICRA website, showing various functions that ICRA is involved in.

Apart from the above mentioned, ICRA is quite more into more financial services is done through establishing its subsidiaries to work more efficiently, independently and trustworthy. It offers its services to clients as per their need and demand through its aforementioned subsidiaries.

Shown above is a flowchart of the ICRA group, making it to range from conventional credit rating agencies to consulting and advisory too. It is also worthy to note that ICRA has its subsidiaries spread beyond the Indian borders to Indonesia, Sri Lanka and Nepal too.

To educate common man and investors alike, it publishes articles, booklets, brochures etc., from time to time, thus volunteering itself into investor education initiative, a much needed campaign.

By way of its sincerity, earnest working efficiency and time proven ability regarding grading/rating etc., it has strongly established it self in the market and won the faith & trust of investors.