Dhanlaxmi Bank to raise ₹200 Cr via Tier 2 bonds
2 min read . Updated: 28 Nov 2022, 10:20 PM IST
Premium- With a market valuation of ₹378.25 Cr, Dhanlaxmi Bank Ltd. is a small-cap company that operates in the financial services industry.
With a market valuation of ₹378.25 Cr, Dhanlaxmi Bank Ltd. is a small-cap company that operates in the financial services industry. Dhanlaxmi Bank Ltd. was founded in Thrissur, Kerala, in 1927, and it currently has 532 touchpoints around India. The company has informed stock exchanges that the Bank's Board of Directors has fixed Monday, December 5, 2022, as the date on which they will consider or approve the Bank's application to raise funds through the issuance of Non-Convertible Debentures (NCDs) in the form of Tier 2 Bonds that comply with Basel III and total Rs. 200 crores.
The company has said today in a stock exchange filing that “We hereby inform that a meeting of the Board of Directors of the Bank scheduled on Monday, December 05, 2022 would inter-alia consider / approve raising of funds by the Bank by way of issuance of Non-Convertible Debentures (NCDs) in the form of Basel III compliant Tier 2 Bonds aggregating to Rs.200 Crores in one or more tranches over a period of time, subject to approval of Regulators! Shareholders, as may be required."
In comparison to the same quarter last year, when Dhanlaxmi Bank recorded a net profit of Rs. 3.66 crores, the quarter ended September 2022 saw a YoY rise of 334% to Rs. 15.89 crore. In Q2FY23, the firm reported an operating profit of Rs.35.35 crore, up from Rs.26.06 crore in Q2FY22. In Q2FY23, total business increased by 15.71% YoY to Rs. 21857 Crore from Rs. 18889 Crore reported in the same period a year prior. Deposits increased 6.96% YoY to Rs. 12748 Crore as of September 30, 2022 from Rs. 11918 Crore as of September 30, 2021, while the bank's CASA share climbed 8.21% YoY and represented 34% of total deposits in Q2FY23. From Rs. 6971 Crore reported in Q2FY22 to Rs. 9109 Crore in Q2FY23, Gross Advance climbed by 30.67% YoY, while the Credit Deposit Ratio grew from 58% to 71%. Gross non-performing assets (NPA) dropped by 263 basis points from 8.67% to 6.04% in Q2FY23, and net non-performing assets (NPA) decreased by 260 basis points from 4.92% to 2.32%. Net interest income accelerated by 28.44% to Rs. 116.44 crore as of September 30, 2022, from Rs. 90.66 crore posted in Q2FY22.
The shares of Dhanlaxmi Bank closed today at ₹14.90 apiece, down by 1.32% from the previous close of ₹15.10. In trade today the stock recorded a total volume of 1,394,870 shares compared to the 20-Day average volume of 3,892,275 shares. On a YTD basis, the stock has fallen 1.00% so far in 2022
