DHANLAXMI BANK LIMITED 
By For Immediate Release
Dhanlaxmi Bank to raise upto Rs. 290.53 crore through Preferential Allotment
• To issue shares at a premium of 15% over market price
Mumbai, May 25, 2011: Dhanlaxmi Bank Limited (“Dhanlaxmi Bank”) today announced that it proposes to raise upto Rs. 290.53 crore by way of preferential allotment of equity shares to a group of private equity and institutional investors (“Preferential Issue”). As part of its future growth strategy, the bank intends to use the capital to support its growing business needs and expansion plans while further strengthening its capital adequacy ratio.
The bank proposes to issue and allot an aggregate of upto 2,07,52,000 equity shares of face value of Rs.
10/- each, at a premium of Rs. 130/- per equity share aggregating to an issue price of Rs. 140/- per equity share. Dhanlaxmi Bank plans to allot upto 51,88,000 equity shares each to WCP Mauritius Holdings (Wolfensohn Capital Partners), Customers Bancorp, Inc., MKCP Mauritius Master Holdings II Limited (Mount Kellet Capital Partners) or any subsidiaries or affiliates and upto 36,31,600 to Multiples Private Equity FII I and upto 15,56,400 to Multiples Private Equity Fund. Speaking on the occasion, Mr. Amitabh Chaturvedi, Managing Director & Chief Executive Officer, Dhanlaxmi Bank said: “The response from long term investors endorses the faith reposed by all stakeholders in the bank’s strategy, robust business model and its commitment to deliver superior shareholder value. The proceeds will be used to support our future expansion plans and will provide us with a firm base for exponential business growth.” Pursuant to the Preferential Issue, WCP Mauritius Holdings, Customers Bancorp, Inc., MKCP Mauritius Master Holdings II Limited or any its subsidiaries or affiliates could hold upto 4.90% each of the issued and paid up equity share capital of Dhanlaxmi Bank. In addition, Multiples Private Equity FII I and Multiples Private Equity Fund could hold upto 3.43% and upto 1.47% respectively. The Preferential Issue proposes to increase the overall capital adequacy ratio of the bank to over 15% and Tier I capital adequacy ratio to over 12% as per Basel II (based on assets as at March 31, 2011). In addition, the Preferential Issue proposes to increase the equity share capital upto Rs. 105.89 crore, and the total shareholders' funds upto Rs. 1,135.17 crore, leading to a dilution of upto 19.6% on the expanded capital base. The relevant date for the purpose of this Preferential Issue is May 23, 2011. The shares allotted pursuant to the Preferential Issue will remain locked in for a period of one year from the date of allotment. The proposed allotment of shares is subject to the approval of shareholders by a special resolution and relevant statutory and regulatory authorities, wherever applicable as well as provisions of applicable law. In January, the Board of Directors had approved the proposal to raise equity capital of up to Rs. 1,000 crore by issue of equity shares not exceeding 5.5 crore equity shares of face value of Rs.10/-.About Dhanlaxmi Bank:
Dhanlaxmi Bank was incorporated in 1927, at Thrissur, Kerala. It became a Scheduled Commercial Bank in 1977. The bank had a total business of Rs. 21,595 crore, as on March 31, 2011.
The bank has transformed into a well diversified bank with a pan-India presence from being an SME focused south Indian bank. The bank with a network of 275 branches and 460 ATMs covering 160 centers across 14 states services a broad customer base of 1.6 million. In the last three years, Dhanlaxmi Bank’s total deposits increased from Rs 3,608 crore as on March 31, 2008 to Rs. 12,530 crore as on March 31, 2011, advances rose from Rs. 2,102 crore as on March 31, 2008 to Rs. 9,065 crore as on March 31, 2011 The total asset base for the bank stood at Rs. 14,268 crore as on March 31, 2011. The shares of the bank are listed on the Bombay Stock Exchange Limited, the National Stock Exchange of India Limited and the Cochin Stock Exchange. For additional information, please log on to www.dhanbank.comFor media queries please contact:
Ravindra Kanchan
Associate Vice-President, Corporate Communications Dhanlaxmi Bank Mobile: +91 - 96198 58132Email: ravindra.kanchan@dhanbank.co.in