Dhanlaxmi bank is all ready to venture into the retail loan business this year from July. The bank has prepared plans to generate capital worth Rs. 150 crore from issuing bonds.
The bank says that money gathered would boost its Tier II capital and assist it in retaining capital adequacy ratio (CAR). The bank’s present CAR is 14.29%.
Bipin Kabra, CFO of Dhanlaxmi bank said, “To achieve our business expansion targets we need to maintain a healthy CAR. As a part of the process, we are now raising Rs 150 crore through a corporate bond issue next month”.
Kabra said that the bank’s loan book has posted an increase of 50% in the present year worth Rs. 5, 000 crore. He anticipates the loan book to increase even faster in the next year due to economic recovery.
In the next years it is anticipated that the retail assets would constitute 30% of the retail loans. This includes car loans as well.
Giving details of the retail loans, Kabra said, “Initially, we are going to roll out the business from 46 cities and smaller town across India. We will be offering products in secured loan category only, such as mortgages, loans against property and vehicles. Later, we will add personal loans to our suite of products”.