The Master Trust Bank of Japan Company Ltd, the Tokyo-based 330 trillion yen asset administrator, had picked up a 2.6% stake in DhanlaxmiBank, formerly known as Dhanalakshmi Bank, through market purchases. Master Trust Bank had picked up the minority stake in the Kerala-based private sector lender in a single deal struck on the NSE. Master Trust Bank, the first trust bank incorporated in Japan, is the latest to join the swelling crowd of domestic and foreign institutional investors to pick up equity stake in DhanlaxmiBank, which does not have any domestic or foreign promoters.
In March, the US-based hedge fund Arcstone Capital LLC through its investment vehicle Passage To India Master Fund had picked up a 5% stake in DhanlaxmiBank for a consideration of Rs 42 crore. Other major institutional investors in the bank are Swiss Finance Corporation (1.58%), India Max Investment Fund (1.87%), Bessemer India Capital (2.34%), Rhodes Diversified (4.35%), and Elara India Opportunities Fund 4.10%).
According to information available with FE, The Master Trust Bank of Japan had lapped up 16.70 lakh shares of DhanlaxmiBank in a block deal on NSE for a consideration of Rs 181.56 per share. This translates into 2.6% of the total outstanding capital of the Dhanlaxmi Bank. The Master Trust Bank had shelled out Rs 30.32 crore for the less than 3% stake in kerala-based lender. DhanlaxmiBank stock closed on NSE at Rs 183.10, up by 0.85%.
Deutsche Securities, however, had sold 11.53 lakh equity shares amounting to 1.8% stake in DhanlaxmiBank at a price of Rs 181.50 per share. Deutsche Bank arm had netted a tad lower than Rs 21 crore through the share sale.
Incorporated in 2000 as the first trust bank in Japan, The Master Trust Bank of Japan, Company Ltd is into the asset administration business and has an investment corpus of 330 trillion yen. The major investors in the trust bank include Mitsubishi UFJ Trust and Banking Corporation, Nippon Life Insurance Company, Meiji Yasuda Life Insurance Company and The Norinchukin Trust & Banking Company Ltd. It had recently started focusing on the merging markets equities and exchange traded funds (ETC) Incorporated in 1927, DhanlaxmiBank is one of the old generation private sector lender sans promoters based in Thrissur in Kerala. The bank has recently launched a campaign to shed its regional tag by going for a brand makeover with plans to set up more branches in major cities outside south India. It currently has a branch network of 210 spread across the country. As of quarter ending June this year, the bank had clocked a total income of Rs 126.87 crore and posted a net profit of Rs 6.03 crore.