Credit Rating

Ref. No.CO:CS:RC:2026-27:076 July 07, 2026 BSE Limited, National Stock Exchange of India Limited, P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Bandra (E), Mumbai - 400 001 Mumbai – 400 051 BSE Scrip Code No.: 532772 NSE SYMBOL: DCBBANK Dear Sir / Madam, Sub: Intimation about Credit Ratings by CARE Ratings Limited We wish to inform you that upon the request made by DCB Bank Limited (“the Bank”), CARE Ratings Limited in its Rating Rationale dated July 07, 2026 has assigned the ratings of the Bank as under: 1) reaffirmed “CARE AA-; Stable” rating for the Basel III Complaint Tier II Bonds Programme of ₹400 crore. 2) reaffirmed “CARE A1+” rating for ₹2000 Crore Certificate of Deposit Programme of the Bank. 3) reaffirmed “CARE A1+” rating for the Short-Term Fixed Deposit Programme of the Bank. The Rating Rationale is enclosed herewith and the same is also available on website of CARE Ratings Limited. Please take note of the above in compliance with the provision of Regulation 30 and any other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Thanking you, Yours faithfully, For DCB Bank Limited Rubi Chaturvedi Company Secretary & Compliance Officer Page 1 of 1 DCB Bank Limited Corporate & Registered Office: 6th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai - 400013 CIN: L99999MH1995PLC089008 Tel: +91 22 66187000 Fax: +91 22 66589970 Website: www.dcb.bank.in Press Release DCB Bank Limited July 07, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action Tier II Bonds 400.00 CARE AA-; Stable Reaffirmed Certificate Of Deposit 2,000.00 CARE A1+ Reaffirmed Fixed Deposit Ongoing CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-6. Rationale and key rating drivers Reaffirmation of ratings assigned to the Tier II Bonds, short-term fixed deposits, and Certificate of Deposit (CD) of DCB Bank Limited (DCB) reflects bank’s comfortable capitalisation with a healthy cushion above the minimum regulatory requirements, supported by regular capital infusions, along with consistent profitability and the continued support expected from its promoter, the Aga Khan Fund for Economic Development (AKFED). The rating also benefits from the bank’s experienced and stable senior management team, its steady and well-calibrated advance growth with a focus on the retail segment, particularly to self-employed individuals and the SME/MSME sectors, and DCB’s stable asset quality. The ratings remain constrained by the bank’s moderate resource profile, with relatively lower proportion of low-cost CASA deposits and a higher reliance on term deposits. Additionally, DCB's earning profile remains average in comparison to peers, while its overall scale of operations continues to be modest within the banking industry. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: • Improvement in profitability with return on total assets (ROTA) over 1.25% on a sustained basis. • Continuously improving scale of business, significantly increasing CASA proportion while maintaining asset quality parameters and capitalisation. Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: • Declining capital adequacy ratio (CAR) with cushion over the minimum regulatory requirement falling below 3%. • Deteriorating asset quality with net non-performing assets (NNPA) ratio above 3% on a sustained basis. • Falling profitability with return on total assets (ROTA) remaining below 0.5% on a sustained basis. Analytical approach: Standalone Outlook: Stable CareEdge Ratings expects DCB to sustain its steady growth in advances and deposits over the medium term, while maintaining stable asset quality and comfortable capitalisation levels. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers: Key strengths Comfortable capitalisation with adequate buffer DCB’s capital adequacy ratio (CAR) continues to be comfortable supported by regular accretion of profits and timely equity raise. Promoters (Aga Khan Fund for Economic Development S.A (AKFED)) have infused ₹83.00 crore in the bank in October 2025. The bank had also raised capital through Tier-II bonds of ₹300 crore in March 2023 and ₹400 crore in November 2024. CAR and CET1 ratio stood at 16.55% and 14.26% as on March 31, 2026, respectively, as against 16.77% and 14.30% as on March 31, 2025. CareEdge Ratings expects the bank to maintain sufficient capital cushions over the minimum regulatory requirements in the medium term by raising equity capital as and when needed. Retail focused advance book with stable growth DCB’s portfolio remains well-diversified and predominantly retail-focused, targeting self-employed and MSME/SME retail segment. Banks majority of the loan book consists of small-ticket loans of less than ₹3 crore (as on March 31, 2026), with an around equal proportion of secured loans. Mortgages (Home loans and loan against property [LAP]) accounted for 39.0% of the advances, followed by Agri & Inclusive Banking (AIB) at 23.5%, and corporate loans at 7.5% as on March 31, 2026. Bank’s co-lending portfolio grew at a steady pace during FY26, making up 13.8% of total advances as on March 31, 2026. Going forward, the bank intends to focus on expanding its organic loan book, with co-lending expected to grow in line with overall balance sheet growth. The bank also offers a range of other products, including gold loans, SME/MSME financing, commercial vehicle loans, and construction finance. The total net advances stood at ₹60,022 crore as on March 31, 2026, up from ₹51,047 crore demonstrating year-on-year growth of 18% during FY26. CareEdge Ratings expects the bank to continue to grow its advances at a stable pace in the medium term, led by the retail segment. Stable asset quality metrics DCB has maintained asset quality at comfortable levels despite its exposure to segments that are generally more susceptible to economic downturns. The bank benefits from a relatively low share of unsecured loans and limited exposure to the microfinance sector, which has faced heightened stress recently. As a result, its asset quality remains comparatively stable. The slippage ratio stood at 3.38% during FY26 compared to 3.76% in FY25. GNPA and NNPA stood at 2.45% and 0.89% as on March 31, 2026, compared to 2.99% and 1.12%, respectively as on March 31, 2025. The proportion of Gross Standard Restructured Advances has improved significantly, decreasing from 2.96% as on March 31, 2024, to 1.82% as on March 31, 2025, and further to 1.28% as on March 31, 2026. Consequently, net stressed assets (NNPA + Net Standard Restructured Assets + Net Security Receipts) to net worth ratio improved from 26.37% as on March 31, 2025, to 19.53% as on March 31, 2026. Going forward, CareEdge Ratings expects the asset quality to further stabilise with gradual reduction in restructured book. Experienced management team DCB has an established board and management team. The board of DCB comprises 12 members, possessing extensive experience in the BFSI sector. Mr. Praveen Kutty, MD & CEO of the bank, has been a career banker with over 34 years of banking experience In DCB Bank he has held various roles, heading Retail Banking, Agri Banking & SME Banking in the last 17 years. He is supported by various product and functional heads, having a longstanding tenure at the bank possessing significant experience in their respective domains. Key weaknesses Modest scale along with moderate resource [Showing first 8,000 characters — download PDF for full document]