Dhanalaxmi Bank plans Rs 350 cr QIP fund-raising in July | business | Hindustan Times
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Dhanalaxmi Bank plans Rs 350 cr QIP fund-raising in July

Private sector Dhanalaxmi Bank plans to raise Rs 350 crore through a qualified institutional placement (QIP) by the third week of July, a top bank official said.

business Updated: Jun 13, 2010 12:22 IST

Private sector Dhanalaxmi Bank plans to raise Rs 350 crore through a qualified institutional placement (QIP) by the third week of July, a top bank official said.

"We plan to raise Rs 350 crore through a QIP by the third week of next month. We will be diluting around 23 per cent of our equity," Dhanalaxmi Bank's Managing Director & CEO, Amitabh Chaturvedi, told PTI in Mumbai on Sunday.

The resources raised will be used to fuel the bank's business.

"We want to up our advances from the present Rs 5,100 crore to Rs 9,000 crore in FY 11. The funds raised will be used towards this," he said.

The bank now plans to strongly focus on the retail segment and by end-this fiscal, it aims to lend at least 30 per cent (of its total advances) to this segment.

"Our aim is to have a lending of around 40 per cent to large corporates and 30 per cent each to the SME and retail segments by end FY 11," Chaturvedi said.

With its retail portfolio very small, even around Rs 2,500 crore of new retail lending will take it up to 30 per cent, the Dhanalaxmi Bank chief said.