CARE reaffirms ratings of Dena Bank’s Long Term Debt Instruments

Credit rating agency, CARE has reaffirmed ‘AA+’ rating to Dena Bank’s Lower Tier II Bonds worth Rs 1610.00 crore  and ‘AA’ rating to company’s Perpetual Bonds worth Rs 125.00 crore.

CARE has rated the aforesaid Perpetual Bonds one notch lower than the Lower Tier II Bonds in view of their increased sensitiveness to the Dena Bank’s Capital Adequacy Ratio (CAR), capital raising ability and profitability during the long tenure of the instruments.

Dena Bank was established in 1938 and was nationalized in July 1969. As on March 31, 2012, the bank has 1,342 branches and 543 ATMs with 57% branches in rural and semi-urban areas. More than half of the bank’s branches are in the states of Gujarat and Maharashtra.