CRISIL assigns fundamental grade 2/5 to DCB

Rating agency, CRISIL Equities has assigned a CRISIL IER fundamental grade of 2/5 to Development Credit Bank (DCB). The grade indicates that the company’s fundamentals are moderate relative to other listed equity securities in India. The rating agency has also assigned a valuation grade of 3/5 to the company.

The assigned fundamental grade takes into account the bank’s successful restructuring following heavy losses during FY09-10 due to large exposure to unsecured loans.

DCB’s business segments include retail, micro-SMEs, large SMEs, mid-Corporates, agriculture, commodities, government, public sector, Indian banks, co-operative banks and non banking finance companies (NBFC). DCB has approximately 600,000 customers.