Development Credit Bank's (DCB) has recorded a net loss for the of Rs 163 crores on account of provisioning and the re-valuation for the fiscal 2004-05.

Though, the fresh infusion of capital of $32 million (Rs 140 crores) has helped the bank to absorb the impact of the depreciation of the its investments in government securities, which were re-valued on a mark-to-market basis in September 2004.

Fitch Ratings has recently downgraded the national rating of Development Credit Bank's (DCB) Rs 1,600 crore subordinated debt programme to A from A+. The downgrade reflects the delay in implementing the bank's plan to write off the legacy non-performing loans (NPLs), and diversify and grow its income streams.

According to bank, the capital asset ratio (CAR) is within acceptable norms at 9.8%. Going forward, the bank plans to further strengthen its balance sheet and proposes to raise new capital during the current financial year.

The bank has also undertaken cost cutting exercise by trimming down its staffing levels by 20% from a year ago. Furher the back office process is being streamlined in order to achieve greater efficiency. Development Credit Bank (DCB) has also announced the appointment of Nasser Munjee as its chairman, with effect from August 2005.

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