CRISIL has reaffirmed 'A-/Stable' ratings on the debt instruments of Development Credit Bank (DCB). The rating continues to reflect DCB's adequate capitalization and the expectation of continued support from its promoter, the Aga Khan Fund for Economic Development (AKFED).

These rating strengths are partially offset by the bank's susceptibility to asset quality risks; its average, but improving, earnings profile; and average, albeit growing, business franchise.

CRISIL believes that DCB's capitalization will remain adequate to meet its business growth and manage its asset-related risks over the medium term, with Tier I CAR expected to remain over 10.5 per cent. CRISIL also believes that DCB will continue to receive support from AKFED.

The outlook may be revised to 'Positive' if the bank strengthens its market position significantly, while maintaining healthy asset quality and earnings. Conversely, the outlook may be revised to 'Negative' if DCB's asset quality or earnings deteriorate, or if AKFED revises its stance on support to DCB.