• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Talks on with investment bankers

Kolkata , Jan. 10

Dhanalakshmi Bank has proposed to expand its capital base. It may opt for a follow-on public offer as part of a plan to expand its net worth to Rs 300 crore by the end of 2007-08.

The bank, which has just concluded a round of talks with leading investment bankers, is yet to finalise details, including the size of a possible offer. Its net worth currently stands at Rs 117 crore.

"The board will take up the matter further. There may be a variety of options to choose from," Mr V.S.R. Murthy, Executive Director, Dhanalakshmi Bank, told newspersons here.

Currently, 63 per cent of the bank's stake is with the public, while the promoter group holds 37 per cent. It has a paid-up equity base of Rs 32 crore and a capital adequacy of 9.97 per cent.

The bank, which aims at shoring up its modest deposits base, has started a low-cost deposit mobilisation programme. The idea is to help increase its size of business, which stood at roughly Rs 4,600 crore. Of this, deposits accounted for Rs 2,800 crore. This has lately grown at the rate of 15 per cent.

The bank, Mr Murthy said, is now set to expand its network, courtesy 32 new branches. A number of these will be located outside Kerala, its traditional market. The bank, which has about 180 branches at the moment, will also add 18 new ATMs to its network.

Dhanalakshmi Bank plans to reduce NPAs substantially in the coming months, it is pointed out. Its small-sized non-performing loans totalled Rs 89 crore or so; of this Rs 78 crore has been provided for.

More Stories on : Public Offer | Private Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee weakens by 18 paise

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line