Thrissur-based Dhanlaxmi Bank plans to reach a business volume of ₹50,000 crore by its centenary year in 2027. The bank, which recently achieved its first-ever annual net profit surpassing ₹100 crore, is focusing on expanding its retail and MSME loan portfolios to drive sustainable growth.
Dhanlaxmi Bank has unveiled a strategic roadmap to achieve a business volume of ₹50,000 crore as it approaches its centenary in 2027. This growth initiative follows a successful financial recovery period from 2010 to 2022, marking a shift toward more consistent performance. In the previous fiscal year, the bank achieved a milestone by recording an annual net profit exceeding ₹100 crore, supported by a ₹300 crore rights issue that provided the necessary capital for digital expansion and business operations.
To reach its target, the bank is focusing on a shift in its lending strategy. It plans to prioritize retail and MSME segments, moving away from a high reliance on corporate advances. The bank is integrating a digital Loan Origination System to streamline retail credit processing. Simultaneously, it is upgrading its core banking technology to an API-based architecture, which aims to automate the entire lending process from underwriting to the final disbursement of funds.
Geographic and deposit-based expansion is also a central part of the bank's plan. It intends to open 25 new branches, with a concentration in Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka to bolster its presence in Southern India. Currently, the bank manages a network of 265 branches. On the liability side, the bank is tapping into foreign currency funding with the 'FCNR Maxigain' product, which offers a 7.25% interest rate on dollar deposits by utilizing RBI's foreign exchange swap facilities. Additionally, it has established a specialized NRI cell at its headquarters to drive further deposit growth.
Financially, the bank maintains a healthy capital position, with a Capital to Risk-weighted Assets Ratio (CRAR) of 18.92% as of March 31, significantly higher than the 11.5% regulatory requirement. Its asset quality has also improved, with Gross Non-Performing Assets falling to 1.89% and Net NPA to 0.51%. The bank's profitability has been aided by a net interest margin supported by a 10.17% yield on advances compared to a 5.61% cost of deposits. While the bank reported a 19.56% year-on-year growth in CASA (Current Account Savings Account) in the first quarter of fiscal 2026-27, sustained success will depend on its ability to maintain these margins and manage credit quality while scaling its digital and physical infrastructure. Investors will likely track the bank's progress in achieving its 17% growth target for CASA and the actual utilization of its new branch capacity in the coming quarters.