Private sector lender, Dhanlaxmi Bank has received approval from regulator, Reserve Bank of India in order to raise capital worth Rs 1000 crore in the upcoming months.

The first phase of capital would come from private investors by May 15 amounting to Rs 500 crore. The remaining Rs 500 crore would come via GDR and eligible qualified institutional investors.

According to Mr Amitabh Chaturvedi, Managing Director of the bank, detailed discussions are in process. So far 8-9 investors have shown interest on the issue. Firms from UK and US are also showing interest in investing in the bank.

The bank has 22% of its total deposits coming from current account and savings account.

The bank plans to increase branch network to 400 by March 2012 and take ATM count to 1000.