core sector communique

Dhanlaxmi Bank forays into silver retailing business

· Launches ‘Dhan’ silver bars in two denominations of 50 and 100 grams

Mumbai, January 09, 2012: Dhanlaxmi Bank, one of India’s fastest growing mid-size private sector banks, today entered the silver retailing business with the launch of ‘Dhan’ silver bars. The silver bars will be available in a tamper proof laminated pack in two denominations of 50 and 100 grams at branches across the country.

‘Dhan’ silver bars with a purity of 99.99% will carry Assay certification, signifying highest purity of silver as per international standards.

Speaking on the occasion, Mr. Deepak Singh, Head, Insurance, Gold & Silver, Dhanlaxmi Bank said: “The launch of ‘Dhan’ silver bars has been prompted by the success of the bank’s gold retailing business. With this launch, we foresee further traction and aim to become one of the leading players in the bullion business in the next couple of years.”

The launch of silver retailing marks the second phase of the bank’s foray in silver bullion business. In July 2011, the bank rolled out its wholesale initiative with the launch of 30 kg silver bars and silver grains.

India is the largest importer of silver in the world. According to estimates of Bombay Bullion Association, imports of silver into India will exceed 4,000 tonnes in 2011. In 2010, India consumed about 2,800 tonnes of silver.

“We see a lot of potential in metals as an asset class. With higher disposable income and high inflation, investment in metals such as silver and gold will allow investors to hedge and diversify their savings and investment portfolio,” Mr. Singh added.

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.