Credit rating firm Fitch has lowered the outlook for private sector lender Dhanlaxmi Bank to ‘stable’ from ‘positive’, citing unlikely improvement in its credit profile in medium term.
“The outlook revision reflects Fitch’s expectations that structural challenges facing the bank from its aggressive expansion in recent years are unlikely to improve its credit profile in the short- to medium-term," Fitch said in a statement.
It said the bank expects to grow at a slower rate in the current fiscal, after the aggressive 81 per cent loan growth in 2010-11. Also, its capitalisation is weakening from low internal capital generation.