Home / Markets / Stock Markets /  Dhanlaxmi Bank board okays fundraising of 300 cr via NCDs; stock rises 9%

Kerala-based Dhanlaxmi Bank on Monday received the board of directors' approval for fundraising to the tune of 300 crore through non-convertible debentures (NCDs) issuance in one or more tranches. On exchanges, there has been a strong buying in Dhanlaxmi Bank shares as they touched a new 52-week high. Overall, the stock has climbed by nearly 9% so far in the day.

As per the regulatory filing, the board of directors in a meeting held on December 5 has inter alia considered and approved the raising of funds by the bank by way of issuance of non-convertible debentures (NCDs) in the form of Basel III Tier 2 bonds.

The fundraising aggregates to around 300 crore. The NCDs will be issued in one or more tranches over a period of time, subject to the approval of regulators/shareholders, as may be required.

Dhanlaxmi's board has further recommended the same for the approval of shareholders by way of a special resolution at the forthcoming annual general meeting.

At around 2.58 pm, the bank's stock is trading at 19.55 apiece up by 5.96% on BSE. The stock touched a new 52-week high of 20.05 apiece earlier in the day. Its market cap is nearly 496 crore.

Last week, on Friday, the shares had closed at 18.45 apiece on BSE.

In Q2FY23, the bank posted strong growth in profitability to 15.89 crore compared to 3.66 crore in Q2FY22. Net interest income (NII) stood at 116.44 crore in Q2FY23 up by 28.44% from 90.66 crore in the same quarter last year. Net interest margin improved to 3.58% in the quarter. As of September 30, 2022, the bank's gross NPA bettered to 6.04% from 8.67% in Q2FY22, while net NPA more than halved to 2.32% from 4.92% in Q2 of FY22.

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