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Dhanlaxmi Bank to raise Rs 400 crore through issue of subordinate debt

10 Apr 2012 Evaluate

Dhanlaxmi Bank is planning to mop up Rs 400 crore through issue of subordinate debt and equity capital in fiscal 2012-13. The bank will raise tier-I capital of Rs 200 crore in the first quarter of the current fiscal and equity capital of Rs 200 crore in the second quarter. The fresh capital raising will ensure that the bank's capital adequacy ratio would be around 11% for the financial year 2012-13. The bank’s capital adequacy ratio was at 9.88% as on December 2011.

Further, with the lowest non-performing assets (NPA) of 0.35% in the industry as on December 2011, the bank is aiming at a net interest margin of 2.5% to 3% in FY13 by focusing on retail operations. It is also looking at improving its non-interest income and is targeting overall growth of 20% to 25% this fiscal.

Dhanlaxmi Bank is an 85-year old bank with a network of over 275 branches and 460 ATMs covering 160 centers across 14 states, the bank services a broad customer base of 1.6 million. The bank provides a suite of banking products and services to its customers across Retail Banking, Wholesale Banking, Microfinance and Agricultural Lending and Small and Medium Enterprises Group.

Dhanlaxmi Bank Share Price

26.92 0.25 (0.94%)
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