The capital deficit of Nippon Credit Bank, which is currently under state control, for the year that ended in March increased by some 50.7 billion yen over levels reported in September, the bank's earnings report showed Friday.

As a result, NCB's capital deficit came to 3.24 trillion yen at the end of March, leading to a considerable rise in the amount of tax money required to cover the losses of the troubled long-term credit bank.

The capital deficit increase was attributed to the decreasing value of collateral on its loans due to falling land prices, as well as the collapse of more of its clients.