Dhanalaxmi Bank plans Rs 350cr QIP by Sept
Private-sector lender Dhanalaxmi Bank plans to raise Rs 350-400 crore via a qualified institutional placement (QIP) to fund loan growth in 2010/11, a senior official said on Tuesday.
The board approved issue of about 210 crore shares to institutional investors by September 2010 to augment the tier I capital base, Bipin Kabra, chief financial officer.
“We have the board approval and will start the process for the issue by applying before Reserve Bank of India (RBI) for approval,” he said.
The bank is expecting loans to grow 70% in the current year, Kabra said adding the loan book is Rs 5000 crore.
The lender also expects to raise share of retail lending in its loan book to 30% from 10% now, he said.
Earlier, the bank posted a 75% fall in March quarter net profit to Rs 5600 crore, mainly on account of higher capital expenditure for investment in people, technology and infrastructure.
It spent Rs 190 crore during Jan-March, up from Rs 110 crore a year ago, on recruiting people, setting up branches and technology, Kabra said.
Its net interest margin for the quarter was at 2.7%, up from 2.5%, while the gross non-performing asset ratio was down to 1.54% from 1.99% a year ago.
The lender’s capital adequacy was at 12.47%, as per Basel II norms.
Source:- Moneycontrol
