Dhanlaxmi Bank, a Thrissur-based bank, has set an ambitious plan to increase its business from the current ₹27,000 crore to ₹45,000 crore over the next three years. To achieve this goal, the bank plans to focus on improving productivity, investing in technology, and expanding its branches in Tier 2 and Tier 3 locations. The bank is also looking to up-skill its employees and leverage their existing strengths.
The bank has identified gold loans and retail products as its biggest portfolios, making up 33% and 24% of its advance book, respectively. To improve its performance, the bank has introduced measures to enhance recovery and collection of loans, which has led to a steady decline in non-performing assets (NPAs) from 5.19% in March 2023 to 3.53% in December 2024.
The bank is also exploring other avenues, such as tie-ups with educational institutions to offer fee management software and tie-ups with a few schools to manage fees and other aspects related to students. Additionally, the bank has launched various digital banking platforms, including Dhanam Genius and Yuvak variant savings accounts, and Dhansmart and Dhan Delight, to attract millennials and Generation Z customers.
The bank’s Managing Director and CEO, Ajith Kumar K.K., is optimistic about the bank’s future growth, stating that the current trend of double-digit growth is expected to continue. With the successful conclusion of its ₹297 crore Rights Issue, the bank is now well-equipped to achieve its goals, with a capital adequacy ratio of 16.5% plus.