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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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.