Dhanlaxmi Bank has 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.
The bank has decided to raise Rs 1,000 crore in the 2011-12 fiscal to support the growth and expansion of its business. As per the data released in the quarter ended March 31, 2011 the bank posted a net profit of Rs 11 crore which is an increase of 96 per cent over Rs 5.6 crore in the last year, in the same quarter the banks has achieved growth in its business by 78 per cent to Rs 21,595 crore from Rs 12,105 crore. The bank has a wide range of loan products ranging from Property Loans to Loan against Security.
Mr Bipin Kabra, Chief Financial Officer, Dhanlaxmi Bank said that the bank’s growth was mainly because of the bank’s strategy to enter into new geographies and diversify its business streams to increase its fee income. He added saying that there will be more growth from SME segment in the current fiscal, even as retail will continue to grow. He also said that the bank will not get into credit cards or personal loan for now as it is necessary to grow its secured assets.