Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Dhanlaxmi Bank’s Lower Tier II Bonds worth Rs 267.70 crore to ‘BBB-’ from ‘BBB’. The rating agency has also revised rating of the bank’s Upper Tier II Bonds worth Rs 27.50 crore to ‘BB+’ from ‘BBB-’.
The revision in ratings factors in deterioration in the overall risk profile of the bank on account of weak financial performance due to operating losses and higher provisioning on account of deterioration in asset quality during Q3FY14 and market risk impact on investments and the resultant moderation in capital adequacy of the bank.
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.
