Mumbai: Icra has downgraded the rating of Dena Banks Rs 200-crore unsecured, subordinated long-term bond by four notches from LAA to LA. This is for the first time that the rating of a public sector bank has been downgraded.

According to Icra, the downgrade takes into account the impaired asset quality, high provisioning requirements, low-capital adequacy and the losses made by the bank.

Dena Bank had incurred a loss of Rs 266.12 crore during the year 2000-2001. Its capital adequacy ratio stood at 7.33 per cent as on 31 March 2001, against the RBI-stipulated ratio of 9 per cent.

The banks non-performing assets stood at 18.37 per cent of the total assets as on 31 March 2001. As on the same date, the banks provisioning was Rs 229.94 crore.

Icra has withdrawn the A1+ rating assigned to the banks Rs 500-crore CD programme as there are no outstanding amounts, and the bank has stopped its CD programme.