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CARE Reaffirms Strong Ratings for DCB Bank on Capital Strength and Stable Asset Quality

Story Highlights
  • CARE reaffirmed DCB Bank’s strong ratings on Tier II bonds, CDs and fixed deposits.
  • Reaffirmation reflects solid capital, promoter support, stable asset quality but modest scale and earnings.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
CARE Reaffirms Strong Ratings for DCB Bank on Capital Strength and Stable Asset Quality

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DCB Bank Limited ( (IN:DCBBANK) ) has issued an update.

DCB Bank Limited has had its credit ratings reaffirmed by CARE Ratings Limited, which maintained a ‘CARE AA-; Stable’ rating on its ₹400 crore Basel III-compliant Tier II bonds and ‘CARE A1+’ on both its enhanced ₹2,000 crore certificate of deposit programme and its short-term fixed deposit programme. The rating action reflects DCB Bank’s comfortable capitalisation backed by regular capital infusions, including recent promoter support from the Aga Khan Fund for Economic Development, consistent profitability, stable asset quality, and a seasoned management team, while also noting constraints such as its moderate resource profile, average earnings compared with peers, and modest scale of operations; the Stable outlook indicates expectations of steady growth in advances and deposits, though profitability may face pressure in FY26 from faster transmission of rate cuts to lending yields than to funding costs.

More about DCB Bank Limited

DCB Bank Limited is an Indian private sector bank headquartered in Mumbai, operating in the commercial banking industry. It focuses on retail and SME/MSME lending, with a particular emphasis on self-employed individuals, and relies significantly on term deposits with a relatively lower proportion of low-cost CASA deposits, placing it as a modest-sized player within the broader banking sector.

Average Trading Volume: 219,088

Technical Sentiment Signal: Buy

Current Market Cap: 54.27B INR

Learn more about DCBBANK stock on TipRanks’ Stock Analysis page.

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