CRISIL has revised its rating outlook on DCB Bank's lower Tier II bonds (under Basel II) to 'Positive' from 'Stable', while reaffirming the rating at 'A-'; the rating on the bank's certificate of deposits and short-term fixed deposits has been reaffirmed at 'A1+'. The outlook revision reflects the stable asset quality performance despite sluggish economic environment and continued healthy capitalisation.

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

The ratings may be upgraded if the bank maintain its asset quality and healthy capitalisation while it continues to grow its loan book, in line with the overall banking sector. The seasoning of rapidly growing mortgages and the MSME and SME loan books is essential. Conversely, the outlook may be revised to 'Negative' if DCB's asset quality or earnings deteriorate, or if the growth is less than expected or if AKFED revises its stance on support to DCB.

Shares of the company declined Rs 0.35, or 0.33%, to trade at  Rs 107.30.  The total volume of shares traded  was  48,732 at the BSE (11.01 a.m., Thursday).