DCB Bank Limited — Credit Ratings, 01-07-2025: Credit Rating

CARE Ratings has reaffirmed DCB Bank Limited’s ratings with a stable outlook, maintaining the “CARE AA-; Stable” rating on ₹400 crore Tier II bonds and “CARE A1+” on ₹1,500 crore Certificate of Deposit and fixed deposit programs. The reaffirmation reflects the bank’s comfortable capitalisation, supported by a CET1 of 14.30% and CAR of 16.77%, steady profitability, stable asset quality, and continued support from its promoter, Aga Khan Fund for Economic Development. Despite moderate CASA at 24.5% and an average earnings profile with ROTA at 0.89%, the bank’s well-diversified retail-focused loan book and adequate liquidity underpin rating stability. The ratings support DCB Bank’s cost of borrowing and investor confidence, providing strategic flexibility to sustain growth and manage asset quality.