Dhanlaxmi Bank to Raise Rs 150 Crore via Basel III Compliant Tier-II Bonds

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Dhanlaxmi Bank Approves Issuance of Rs 150 Crore Basel III Compliant Bonds

Team FS

19/Mar/2025

What's covered under the Article:

Dhanlaxmi Bank's board approves raising Rs 150 crore via unsecured Tier-II bonds under Basel III compliance.
The bank reported a strong 563.33% YoY net profit surge to Rs 19.9 crore in Q3 FY25.
Dhanlaxmi Bank's stock jumped 4.97% on the BSE, closing at Rs 23.87 following the announcement.

Private sector lender Dhanlaxmi Bank Ltd has announced that its board of directors approved the issuance of unsecured non-convertible debentures (NCDs) in the form of Basel III compliant Tier-II bonds worth Rs 150 crore. The bonds, each with a face value of Rs 1 crore, will be issued on a private placement basis and will have a tenure of 10 years.

The bank disclosed this decision in a regulatory filing on March 19, 2025, highlighting that the approval covers the general information document, key information document, and term sheet for the proposed issuance.

Dhanlaxmi Bank’s Strong Q3 Performance

Dhanlaxmi Bank's financial results for Q3 FY25 showcased remarkable growth, with the net profit surging 563.33% year-on-year (YoY) to Rs 19.9 crore compared to Rs 3 crore in the same quarter last year. The bank also reported a 12.5% increase in net interest income (NII) at Rs 128.3 crore, up from Rs 114 crore in Q3 FY24.

Furthermore, the gross non-performing asset (GNPA) ratio improved to 3.53% in Q3 FY25, down from 3.82% in the September quarter, while the net NPA (NNPA) reduced to 0.86% from 1.12% quarter-on-quarter.

Stock Market Reaction

Following the announcement of its fundraising initiative and strong Q3 earnings, Dhanlaxmi Bank’s stock surged 4.97% on the BSE, closing at Rs 23.87, up by Rs 1.13.

Why This Matters?

Strengthening Capital Base: The Rs 150 crore fundraising aligns with Basel III norms, ensuring capital adequacy for future growth.
Improved Financial Performance: A massive YoY net profit increase indicates strong operational efficiency.
Stock Market Boost: Investors responded positively, pushing Dhanlaxmi Bank's stock up nearly 5% post-announcement.

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Dhanlaxmi Bank Approves Issuance of Rs 150 Crore Basel III Compliant Bonds

Dhanlaxmi Bank’s Strong Q3 Performance

Stock Market Reaction

Why This Matters?

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