The Hindu Business Line : Dhanalakshmi Bank dividend

The board of directors of Dhanalakshmi Bank has approved a five per cent dividend to all its shareholders for last year. The AGM of the bank, slated for September 27, is expected to approve the dividend proposal. The bank’s net profit grew by 76 per cent to Rs 28.46 crore (Rs 16.14 crore) during 2007-08. The low-cost deposits of the bank increased by 20 per cent to Rs 1,055 crore, up from Rs 876 crore recorded during the earlier year. Gross NPA declined from 5.06 to 2.95 per cent while net NPA fell from 1.75 to 0.88 per cent last year. The AGM would also consider a special resolution to increase the aggregate shareholding of FIIs to 49 per cent in the paid-up share capital of the bank and to increase the aggregate share of NRI holding to 24 per cent. The bank continued its thrust in the area of micro credit during the year. Outstanding to this sector increased by 52 per cent, from Rs 60.72 crore to Rs 92.08 crore. With focused efforts made to strengthen the bank’s linkages with self help groups, the number of savings bank accounts maintained by SHGs had grown from 15,431 to 19,822. At present, there is a limit of 10 per cent for individual FII investment and an aggregate FII investment limit of 24 per cent which is to be raised to 49 per cent with approval from the board and AGM, a communication to the shareholders said. Similarly, the five per cent limit for individual NRI investment in the bank and 10 per cent aggregate investment limit are to be raised to 24 per cent.

— Our Bureau

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