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Dhanlaxmi surges after bank assures turnaround

Bank denies rumours of a possible acquisition; shares rise to Rs.58.70, up 6.44%
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First Published: Fri, Nov 23 2012. 11 15 PM IST
The bank is shedding expensive bulk deposits and low-yielding large corporate loans in an effort to improve the health of its balance sheet as part of its turnaround plan. Photo: Pradeep Gaur/Mint
The bank is shedding expensive bulk deposits and low-yielding large corporate loans in an effort to improve the health of its balance sheet as part of its turnaround plan. Photo: Pradeep Gaur/Mint
Updated: Sat, Nov 24 2012. 01 28 AM IST
Mumbai: Shares of Kerala-based Dhanlaxmi Bank Ltd rose 8% during trading on Friday after its managing director said the private-sector lender is progressing with a revival plan and is not up for sale.
The share price rose by 8.16% to touch an intra-day high of Rs 58.70 apiece before ending the day at Rs 58.70, up 6.44% on BSE Ltd, while the benchmark index Sensex ended nearly flat at 18,506.57 points. Bankex, the index of major banks, closed 0.34% lower at 13,178.67 points.
Denying rumours of a possible acquisition, Dhanlaxmi’s managing director and chief executive P.G. Jayakumar had on Thursday said the bank was shedding expensive bulk deposits and low-yielding large corporate loans in an effort to improve the health of its balance sheet as part of its turnaround plan.
For the quarter ended September, Dhanlaxmi Bank posted a net loss of Rs 18.62 crore compared with a net profit of Rs 4.35 crore in the corresponding year-ago period and a net loss of Rs 11.81 crore in the June quarter. It is the fourth successive quarterly net loss for the bank.
After the controversial exit of its previous auditors following differences with the management, the bank recently appointed Hyderabad-based Sagar and Associates as its new auditor.
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First Published: Fri, Nov 23 2012. 11 15 PM IST
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