The Dhanlaxmi Bank has set a target of Rs 28,000 crore in total business for the next 12-month period, double the current level of Rs14,000 crore.
In the current financial year, the bank aims to achieve deposits of Rs 13,000 crore and the loan portfolio would be increased to Rs 9,000 crore. Its lending business will focus broadly on three sectors -- corporate, SME and retail, according to Amithabh Chaturvedi, managing director and CEO, Dhanlaxmi Bank.
Chaturvedi said the existence of banks was under threat unless they have a total business of Rs 40,000 crore and 500-plus branches. In this context, Dhanlaxmi Bank has drawn up a plan to become a strong new-generation bank with a strong base in local and rural banking.
The bank raised capital by Rs 380 crore, taking its capital adequacy ratio to a comfortable level of 20 per cent. In the next financial year, it would open 125 branches pan-India, taking the total to 400, and 550 ATMs would be added taking the total to 1,000. Currently, Dhanlaxmi Bank has presence in 14 states across the country with 275 branches and 450 ATMs.
Chaturvedi told reporters that there were no plans to open new branches in the current fiscal. In last FY, it opened 66 branches and 308 ATMs across the country with 10 branches in Kerala.
The bank registered a increase in business of more than 100 per cent in two years, from Rs 6,000 crore in 2008 to Rs 14,000 crore in 2010. It has also recruited 1,200 employees in the last fiscal.
The bank plans to expand its rural base by augmenting microfinance business. It adopted the business correspondent model to reach out to the rural markets and for financial inclusion of the rural poor. Through business correspondent, a person can open an account and avail of loans with very simple formality and bio-metric identification.
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According to him, 3-4 very large banks promoted by big business houses will commence operation in the near future. Even the regional rural banks (RRBs) might be an option for take over by large groups.
He denied reports that the Dhanlaxmi Bank had plans to shift the corporate office from Thrissur. A new 11-storied corporate office was being constructed at Thrissur. To be commissioned in March 2012, the new building will house the corporate office, major departments and the staff training centre.