core sector communique

Dhanlaxmi Bank signs MOU with LIC for e-payments

Mumbai, December 06, 2011: Dhanlaxmi Bank, one of India’s fastest growing mid-size private sector banks, has signed a Memorandum of Understanding with Life Insurance Corporation of India facilitating policyholders to receive policy payments through electronic funds transfer.

As per the agreement, the bank will provide electronic payment services to the corporation using National Electronic Funds Transfer (NEFT) mode to credit funds to the policyholders’ bank accounts.

This move is not only going to directly benefit customers of Dhanlaxmi Bank who hold LIC policies but also aid LIC policyholders having accounts with other banks. The bank will use the NEFT facility to transfer funds to policyholders’ account across other banks.

At the MoU signing ceremony, Mr. Sidhartha Routray, Head, Cash Management Service Sales Group, Dhanlaxmi Bank said: “LIC’s decision to tie-up with Dhanlaxmi Bank highlights the bank’s advancement in terms of technology, transaction processing systems and its superior delivery mechanisms. With this tie-up, LIC policyholders can expect immediate disbursal of payments in a convenient and secure environment.”

Instead of the customary process of LIC sending the cheques through postal services and customers depositing in their bank accounts, e-payment will now happen within 24 hours.

About Dhanlaxmi Bank:

Dhanlaxmi Bank is an 84-year old bank, being incorporated in 1927 at Thrissur, Kerala. In the last three years, it has transformed into a well diversified bank with a pan-India presence from being an SME focused South India based bank. With a network of 275 branches and 404 ATMs covering 140 centers across 14 states, the bank services a broad customer base of over 2 million. The bank provides a suite of banking products and services to its customers across Retail Banking, Wholesale Banking, Microfinance and Agricultural Lending and Small and Medium Enterprises Group.

During the last three years, Dhanlaxmi Bank’s total deposits increased from Rs.3,936 crore as on September 30, 2008 to Rs. 13,815 crore as on September 30, 2011, advances rose from Rs. 2,490 crore as on September 30, 2008 to Rs. 10,130 crore as on September 30, 2011. The bank’s total business stood at Rs. 23,945 crore, as on September 30, 2011 with total asset base at Rs. 16,452 crore.

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.