At Thrissur, Dhanlaxmi Bank Ltd was established on November 14, 1927, as Dhanalakshmi Bank, with a ₹11,000 capital and seven staff members. In 1977, it was designated as a Scheduled Commercial Bank.
On August 10, 2010, the bank changed its name from Dhanalakshmi Bank to Dhanlaxmi Bank.
Due to concerns with the bank's governance, shareholders decided at the annual general meeting in 2020 to remove CEO Sunil Gurbaxani.
The Centralized Banking Solution (CBS) on the Flexcube platform has been implemented by Dhanlaxmi Bank in all of its branches to provide its customers with anywhere, anytime, and any way banking through a variety of delivery channels. To maintain the networked system running around-the-clock, the bank established a data center in Bangalore.