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.

For more updates on IPOs, market trends, and financial news, check out our latest coverage on Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for expert trading and investment calls by SEBI Registered Research Analyst CA Abhay Varn & Finance Saathi Telegram Channel for the latest share market, news, and IPO updates.

Start your stock market journey today! Apply for IPOs by opening a Free Demat Account with Choice Broking FinX.