Dhanlaxmi Bank's Rs 127-cr rights issue hits fresh roadblock at boardroom

Lender was aiming to raise Rs 127 crore for growth plans

The woes of Thrissur-based Dhanlaxmi Bank, which has been facing ire from shareholders, continue as its planned rights issue is being hit by the lack of required quorum of members on the board. The bank is yet to fill the posts of women and independent directors, which is mandatory as per the regulatory requirement, owing to an ongoing legal dispute with the shareholders.  

The bank was looking to raise Rs 127 crore as equity capital through a 2:1 rights issue to improve its capital adequacy ratio, which fell to 12.98 per cent as of March 2022 to over 15