RBI has given approval to Kerala-based Dhanalakshmi bank to hike FIIs and NRIs stake in the bank to 49 percent and 24 percent respectively.

The bank has informed the Bombay Stock Exchange (BSE) that RBI has no objections in raising the limits from 24 and 10 percent to 49 and 24 percent respectively.

The bank, in a press release said that this had also been approved by the shareholders. Dhanlakshmi bank was incorporated in 1927 and is headquartered at Thrissur. It subsequently became a scheduled commercial bank in 1977.

The bank, presently offers banking products and services to both resident and Non resident Indians through a network of 250 branches and 78 ATMs.

It is also considering adding 66 branches and 380 ATMs throughout the country. The bank has a networth of over Rs. 400 crore, deposits worth Rs. 4,969 crore and advances amounting to Rs. 3,245 crore as on March 2009.

The bank also provides microcredit to both public and private banks in Kerala. According to the press release, at march-end this year the bank had an outstanding Rs. 124.40 crore under micro credit.