A recent press report said that private lender Dhanlaxmi Bank has planned to enter into new segments to boost its non-interest income at a time when rising and falling interest rates makes it difficult to protect margins. The bank has planned to enter into retail gold sales segment and forex cards in FY12 to boost its profitability.
Mr. Bipin Kabra CFO of the bank said that gold has a good amount of growth potential; the demand for gold is increasing day by day as gold is considered to be a safe haven. He added saying that the there is no fall in price but the volumes keep on increasing.
He added saying that the bank is more of Kerala based and that the bank don’t have to sell the brand of Dhanlaxmi so we’ll be looking at deeper penetration there. Reports said that the bank has nearly 145 branches in Kerala, and aims to become one of the leading players in this segment in the next couple of years. The bank offers consumer loans, personal loans, car loan, home loan etc. ,
Earlier the bank had planned to raise Rs 500 crore equity capitals before May-end in order to boost up its capital adequacy ratio. The capital adequacy ratio of the bank had fallen from 12.99 per cent to 11.8 per cent as on March 31, 2011.