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Our Bureau

Mumbai , June 12

Dhanalakshmi Bank has set an ambitious target of over 40 per cent growth for the current fiscal.

The bank expects its total business to touch Rs 6,000 crore from Rs 4,223 crore in the last fiscal.

It also plans to increase net profit from Rs 9.51 crore to Rs 22 crore.

The deposits and the advances are estimated to be Rs 3,500 crore and Rs 2,500 crore respectively, according to Mr V.S.R. Murthy, Executive Director.

"We will concentrate on retail, priority and small and medium enterprises sector."

The bank also plans to open 32 new branches during the year and will concentrate in Delhi and Rajasthan in the north, he added.

It plans to reduce the percentage of net NPAs to total assets from 2.44 per cent to 1.75 per cent.

"Most of our advances are small loans in the range of Rs 10-50 lakh. So, recovery should not be a problem."

The banks also expects to improve non-interest income from Rs 27.05 crore to Rs 53.25 crore through sale of third party products and services such as currency chest management and offering letter of credit (LC) and letter of guarantee (LG).

"We hope to tie up with four mutual funds by August. Apart from the tie-ups with three banks for LC and LG, we hope to tie up with two more for these services. This will add to our income from commissions."

To raise capital, Dhanalakshmi Bank is considering a Tier-II bond issue and a public issue.

But the quantum of the issue and rate of interest have not been fixed yet.

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