Dhanlaxmi Bank to raise Rs 1,000 cr

Dhanlaxmi Bank's net profit for the third quarter ended December 31, 2010, increased by over five times to Rs 7.3 crore, from Rs 1.3 crore for the corresponding period previous year.

The bank plans to raise equity capital of up to Rs 1,000 crore by issue of up to 5.5 crore equity shares of a face value of Rs 10. The equity issuance will be made to augment its Tier-I capital base. The bank would use the capital to support its business growth and expansion plans while further strengthening its capital adequacy ratio.

The bank's chief financial officer Bipin Kabra said that improvement in asset quality and renewed focus on existing and new business and fee-based income had contributed to the growth in net profit.

 

The bank’s total business grew 76.1 per cent to Rs 18,303 crore from Rs 10,393 crore as on December 31, 2009. The bank’s loan book witnessed a sharp growth largely due to greater thrust on the retail segment and diversification across regions.

Total advances and total deposits continued to rise during the quarter registering a year-on-year growth of 77 per cent and 76 per cent respectively, a bank press release said.

The bank’s total income increased to Rs 283 crore in the reporting period from Rs 156 crore in the same period last year, recording a growth of 81 per cent.