Mumbai, May 26: Crisil has upgraded Development Credit Bank Ltd's (DCB) Certificate of Deposits (CD) programme from "P1" to "P1+" reflecting high flexibility in raising capital and initiatives taken to strengthen financial profile. The bank's rating also reflects its adequate liquidity position, weak asset quality and relatively high deposit costs, Crisil said in a release here today.

The concerns over asset quality and high deposit costs are expected to be mitigated over the medium term by the initiatives taken by new management team, the release said. In Crisil's opinion, DCB's capital position was underpinned by its high flexibility to raise capital given the capital support demonstrated by a fairly strong promoter with a high willingness and capability to infuse funds.

The increase in the Foreign Direct Investment (FDI) limit for the banking sector from 49 per cent to 74 per cent has further facilitated the prospects infusion of capital, it said. Bureau Report