Oct 28 (LBO) – Rating agency Fitch Lanka affirmed DFCC Vardhana Bank’s AA-(lka) national long term rating on Friday, on the strength of parent company DFCC Bank.
The principal factor supporting the rating of DFCC Vardhana Bank (DVB) is the strong implied support assumed to be available from its parent, DFCC Bank, Fitch Ratings Lanka said in a statement.
In addition to its 95.2 percent shareholding and the use of a common franchise, the operations of DVB are closely integrated with that of DFCC.
Hence, Fitch is of the view that DVB will continue to enjoy a high degree of business and financial support from its parent, DFCC.
Parent company DFCC Bank, rated ˜AA(lka)’ by Fitch, is a licensed specialized bank involved in providing long term project finance.
The company bought up DFCC Vardhana Bank, formerly National Mercantile Bank Limited in 2003, which reported a net loss of 157 million rupees and a negative net worth of 98 million rupees in 2002.
DFCC’s involvement turned around operations of Vardhana Bank, with continued focus on loan growth and healthy margins from its target mid-market customer segment to post a positive n