Indian rupee banknotes are counted in India. (Photographer: Dhiraj Singh/Bloomberg)

Dhanlaxmi Bank Targets 12% Loan Growth Next Fiscal Year

Dhanlaxmi Bank Ltd. aims to grow its loan book by 10-12 percent in the year ending March 2020, according to Managing Director and Chief Executive Officer T Latha.

“The main target for us is to go for a limited branch expansion to ensure growth of 10-12 percent in the financial year 2019-20," said Latha in an interview with BloombergQuint. "We also want to improve our CASA (current account savings account) deposits and housing and car loans on the retail assets front."

The Reserve Bank of India lifted lending restrictions on three lenders, including Dhanlaxmi Bank, on Tuesday. The regulator said the banks had improved their performance and have undertaken structural reforms to improve functioning.

Dhanlaxmi Bank, which was the only private-sector lender under the regulator’s prompt corrective action framework, was allowed to exit because it was no longer in breach of any of the risk thresholds within the framework, the RBI had said. For the old generation private lender, net NPA ratio at the end of December-ended quarter was 2.93 percent, while its tier-1 capital ratio was 10.26 percent.

The Thrissur-headquartered bank may raise fresh capital and plans to bring its net bad loan ratio below 2.5 percent next year, said Latha.

Watch the full interview here:

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