REFILE-China Shenzhen Bank 08 net down 77 pct on provisions

(Corrects dateline to March 20 from March 19)

SHANGHAI, March 20 (Reuters) - Shenzhen Development Bank 000001.SZ, controlled by U.S. private equity firm TPG Capital [TPG.UL], reported a 77 percent decline in 2008 net profit due to loan provisions and write-offs as the economy sags.

Shenzhen Development Bank’s net profit in 2008 fell to 614 million yuan ($90 million) from 2.65 billion yuan a year earlier, the mid-sized Chinese lender said on Friday.

The result was in line with an estimate issued in January, when the bank said it would make 5.6 billion yuan in fresh bad-loan provisions during the fourth quarter following stricter guidance from China’s regulators.

Revenue rose 34 percent last year to 14.51 billion yuan from 10.81 billion yuan.

Shenzhen Development Bank and Chinese rivals including Bank of Communications 3328.HK601328.SS and China Minsheng Banking Corp 600016.SS face tough challenges ahead as Beijing's interest rate cuts have squeezed margins while a slowing domestic economy increases the risk of corporate defaults. ($1=6.824 Yuan) (Reporting by Samuel Shen and Alfred Cang; Editing by Edmund Klamann)