Credit rating agency, ICRA has revised the rating assigned to Rs 27 crore Lower Tier II bonds of Dhanlaxmi Bank to BBB from BBB+. The rating outlook continues to be negative.
The rating revision factors in expected pressure on the profitability of the bank over the short to medium term till the management plans to turnaround the bank by reducing workforce, by reorienting its credit book as well as the deposit mix are effectively implemented.
Dhanlaxmi Bank is an 84-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.
