Dhanlaxmi Bank denies sell-off rumours

Private lender Dhanlaxmi Bank said in a press conference today that it has no plans to shut its branches or shrink operations to cut costs. It has, however, initiated other steps, like salary cuts, to control expenses, it said.

It an effort to improve operational and managerial efficiences, Dhanlaxmi Bank said it will reshuffle its portfolio to ensure a balanced book and raise Rs 200 crore of Tier-I capital by June-end. The bank is firm on retaining all capabilities built in the last three years.

With the lowest non-performing assets of 0.35% in the industry -- as of December 2011 -- the bank is aiming at an NIM of 2.5-3% in FY13 by focussing on retail operations. The bank said it is also looking at improving its non-interest income. It is targetting an overall growth of 20-25% this fiscal.

Dhanlaxmi Bank denied rumours of it being sold even though about 300 employees have quit since November 2011 and up to 40% pay cuts have been imposed for various categories. It, however, accepted that some rationalisation is in the offing.

Shares of Dhanlaxmi Bank were trading at Rs 73.85 per share on the BSE today, down 2.06% from the previous day's close.