Dhanlaxmi Bank to raise Rs 200 cr via bonds

Kerala-based private sector lender Dhanlaxmi Bank today said it would raise Rs 200 crore in last week of March from bonds to funds its business growth.

"We are planning to raise Rs 200 from Tier II bonds this month for credit expansion," Dhanlaxmi Bank Managing Director Amitabh Chaturvedi said after launching credit cards here.

In September 2009, the bank had raised Rs 150 crore from Tier II bonds.

The unsecured redeemable subordinated Non-Convertible Lower Tier-II was of tenure 5 years and 7 months.

With the launch of two credit cards the bank has foray into retail business, he said.

Available in Gold and Platinum variants, the credit cards are targeted at premium customers, he said, adding that clients would, however, have to pay an annual fee.

For the first time in India, he said, the bank is introducing a 'pay by transaction' billing mode for the cards.

Under the programme, instead of monthly billing cycle, the interest-free credit period is considered for individual transaction from the day of purchase.

The customer, thus, enjoys a 45 day interest-free credit period on each purchase and does not need to time the purchase based on the billing cycle, Chaturvedi said.

This feature, he said, also gives the customers the flexibility to decide their own re-payment cycles.

At present, Dhanlaxmi Bank with 270 branches across the country has total business of about Rs 12,000 crore.

Of this 66 branches have been added during the current fiscal.

Asked about the intention to enter into asset management business, Chaturvedi said, the bank plans to buy about 40 per cent stake in a mutual fund.

He, however, did not give details like name and the size of the company the bank intended to pick up the stake in.

At the same time, the bank has entered into a strategic alliance with Destimoney to launch its online broking service platform.