Dhanlaxmi Bank to raise Rs1,000 crore; 1st tranche likely in May

Private sector Dhanlaxmi Bank plans to raise up to Rs1,000 crore of capital to meet its business growth over the next 12-15-months and has already obtained its board approval for the same, a senior bank official said.

"We have obtained our Board nod to raise up to Rs1,000 crore of equity capital. The first tranche will most likely be raised in May. However, the final decision will be taken after considering prevailing market conditions," Dhanlaxmi Bank's chief financial officer (CFO), Bipin Kabra, said here.

The bank is in the process of identifying investment bankers and is expected to finalise their names by this month-end, Kabra said.

"We are already talking to a few bankers and we will decide on them in the next ten days," he said.

The bank will decide on the mode of raising resources soon, he said, adding, however "we are open to all options."

The private sector lender clocked a net profit of Rs7.3 crore in Q3 FY 11 as against Rs1.3 crore in the year-ago period. Its total income increased from Rs 156-crore in Q3 FY 10 to Rs283 crore for the same period this year, up 81%.