Dhanalaxmi Bank plans Rs 400 crore QIP issue

Private-sector lender Dhanalaxmi Bank has proposed to raise Rs 350-400 crore through a qualified institutional placement (QIP) to fund loan growth in 2010-11. The board approved issue of about 2.1 million shares to institutional investors by September 2010 to augment the tier I capital base. “We have the board approval and will start the process for the issue by applying before RBI (Reserve Bank of India) for approval,” it said.

The bank is expecting loans to grow 70 per cent in the current year, it said adding the loan book is Rs 5,000 crore.