Dhanlaxmi Bank Q1 results: Net profit rises 11.5%


Private sector lender Dhanlaxmi Bank on Wednesday reported nearly 11.5 per cent rise in its net profit to Rs 6.79 crore for the first quarter ended June 30, mainly on account of lower provisioning. The bank had posted a net profit of Rs 6.09 crore in the year-ago period.


The total income fell more than 14 per cent to Rs 239.02 crore during Q1 FY22, against Rs 278.62 crore in Q1 FY21, Dhanlaxmi Bank said in a regulatory filing.The bank's interest income decreased to Rs 218.10 crore during the quarter, from Rs 236.65 crore. The income from other sources fell to Rs 20.92 crore from Rs 41.97 crore.


Even as revenues from retail banking grew by 7.9 per cent to Rs 107.36 crore, treasury income declined over 29 per cent to Rs 69.02 crore.The bank's asset quality worsened with the gross non-performing assets (NPAs or bad loans) rising to 9.27 per cent of the gross advances as of June 30, 2021, as against 6.89 per cent by June 2020.


In value terms, gross NPAs spiked to Rs 641.53 crore from Rs 464.45 crore.Net NPAs also rose to 4.58 per cent (Rs 300.86 crore) compared to 2.18 per cent (Rs 140.04 crore).However, provisions and contingencies fell to Rs 2.10 crore for the quarter, down significantly from Rs 37.02 crore in the year-ago quarter.


In accordance with the RBI's resolution plan for COVID-related stress, the lender said a total of 66 accounts have been given benefit under this window, with a total exposure of Rs 62.28 crore. The provisions against these accounts stood at Rs 6.21 crore.


The provision coverage ratio (including technical write off) as of June 30, 2021, is 75.66 per cent, Dhanlaxmi Bank said.The capital adequacy ratio improved to 14.57 per cent at the end of June 2021 from 13.94 per cent a year ago.

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Dhanlaxmi Bank to post a net profit of ₹19.84cr

The rise in operating profit and revenue from treasury have enabled Kerala-based Dhanlaxmi Bank to post a net profit of 19.84 crore in Q1 of FY20. The bank had reported a net loss of 44.99 crore in the corresponding period of the previous fiscal.
T Latha, Managing Director and CEO, said the bank is poised to increase the overall growth by 10 per cent with a focus on retail deposits, particularly current and savings deposits.
The bank has worked out strategies to bring the cost to income ratio to below 65 per cent by March 2020. One of the strategies is to augment income by sanctioning and disbursing more credit, particularly in micro credit, MSME, retail and gold loans, which are high in Kerala. The liquidity position is also very comfortable and there is no constraint for further lending, she said.
During the quarter under review, the operating profit increased to 29.11 crore (20.02 crore). Net interest margin stood at 3.15 per cent (2.74 per cent). CRAR was at 13.85 per cent in the quarter under review, against 13.07 per cent in the corresponding period of the previous year. CAR was also at 10.62 per cent against 9.83 per cent earlier.

NPAs and recovery

Advances grew by 10 per cent year-on-year and the bank is looking ahead to similar growth in the coming quarters as well.
On the recovery front, the bank witnessed decline in net NPA to 2.35 per cent in Q1, against 3.79 per cent. The asset quality was good with no increase in NPA levels. There has been a recovery of 10 crore during Q1, against a similar slippage.
The gross NPA level stood at 7.61 per cent and the bank is looking to bring it down to below 7 per cent in the coming quarter, she said, adding that there are substantial recoveries in sight, going forward.
The Provision Coverage Ratio is also healthy at 85.38 per cent. The recovery and monitoring departments have also been strengthened to reduce slippages and go for recovery, Latha added
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Dhanlaxmi Bank reports profit in Q4FY19


Dhanlaxmi Bank reported net profit of Rs27.6cr in Q4FY19 against loss of Rs17.16cr in a year ago period.

Net interest income of the bank rose 1.5% at Rs87cr against Rs86cr. Provisions for the quarter was at Rs16.3cr against Rs20.2cr.

Its gross NPA was down at 7.47% vs. 8.11%, while net NPA was down at 2.41% vs. 2.93% on qoq basis.
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2 more PSU banks out of RBI’s PCA watch; one private bank also finds its way out

The RBI Tuesday lifted lending curbs on two more public sector banks (PSBs), Allahabad Bank and Corporation Bank, by removing them from its weak-bank watch list. Private sector Dhanlaxmi Bank too has been taken out of the Prompt Corrective Action (PCA) Framework. Earlier on January 31, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce were taken out of the PCA Framework. In a statement, the RBI said the Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital on February 21 into various banks including some of the banks currently under the PCA framework.

Of these banks, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore, respectively. Capital infusion, the RBI said, has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with. "Accordingly, based on the principles adopted by the BFS in its earlier meeting dated January 31, 2019, it was decided in the meeting held on February 26, 2019 that Allahabad Bank and Corporation Bank be taken out of the PCA Framework subject to certain conditions and continuous monitoring," RBI said.

The gross non-performing assets of Corporation Bank stood at 17.36 per cent of the gross advances at the end of December quarter of this fiscal, up from 15.92 per cent in the same period of previous fiscal. For Allahabad Bank, the gross NPA rose to 17.81 per cent from 14.38 per cent a year ago. RBI further it has also been decided to take Dhanlaxmi Bank out of the PCA Framework, subject to certain conditions and continuous monitoring, as the bank is found to be not breaching any of the Risk Thresholds of the PCA Framework.


Dhanlaxmi Bank's gross non-performing assets (NPAs) rose to 8.11 per cent of the total advances, from 6.96 per cent at the end of the third quarter of 2017-18. RBI also it will continuously monitor the performance of the banks under various parameters," the central bank said. Five public sector banks -- United Bank of India, UCO Bank, Central Bank of India, Indian Overseas Bank and Dena Bank -- are still remain under PCA framework, which imposes lending restrictions and prevents them from expanding, among other curbs.

The PCA framework was one of the contentious issue between the government and the RBI. The government wanted the central bank to align the PCA framework to the global norms. The PCA framework kicks in when banks breach any of the three key regulatory trigger points -- namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA). Globally, PCA kicks in only when banks slip on a single parameter of capital adequacy ratio, and the government and some of the independent directors of the RBI board, like S Gurumurthy, are in favour of this practice being adopted for the domestic banking sector as well.
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Dhanlaxmi Bank Q3 result, Reports net profit


Private sector lender Dhanlaxmi Bank Friday reported a net profit of Rs 16.90 crore for the third quarter ended December 2018.

The bank had posted a loss of Rs 21.74 crore in the corresponding period of the previous financial year.
Total income rose to Rs 272.16 crore during the quarter under review as against Rs 270.11 crore in the year-ago period, it said in a regulatory filing.


Gross non-performing assets (NPAs) rose to 8.11 per cent of the total advances, from 6.96 per cent at the end of the third quarter of 2017-18.

However, net NPAs declined to 2.93 per cent from 4.08 per cent a year ago.

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Dhanlaxmi Bank Q2 profit doubles, asset quality improves


Dhanlaxmi Bank second quarter (July-September) profit doubled to Rs 12.1 crore against Rs 6.1 crore reported year-ago on provisions write-back.

Net interest income during the quarter fell by 3.8 percent to Rs 87.4 crore YoY as advances degrew by 4 percent to Rs 5,940 crore.


Deposits also declined in quarter ended September 2018, down 1.65 percent to Rs 10,816.8 crore compared to same period last year.

The bank has improved its asset quality at the end of September quarter. Gross non-performing assets as a percentage of gross advances were down at 7.81 percent against 8.94 percent in previous quarter and net NPAs, too, were lower at 2.92 percent compared to 3.79 percent reported in June quarter.


Dhanlaxmi Bank has written back provisions of Rs 18.19 crore in September quarter against provisions of Rs 65.01 crore made in June quarter and Rs 23.87 crore in Q2FY18.

At operating level, it has reported loss of Rs 6.04 crore against profit of Rs 29.92 crore in corresponding period last fiscal.

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Dhanlaxmi Bank reports net loss in Q1 as bad loans rise



Private sector Dhanlaxmi Bank today reported a net loss of Rs 45 crore in the first quarter ended June 2018. The bank had registered a net profit of Rs 7.97 crore in the corresponding April-June quarter a year ago. The losses widened against preceding March quarter's Rs 17.16 crore.
Total income during the said quarter was down at Rs 256.36 crore from Rs 287.25 crore a year ago, the bank said in a regulatory filing. The core income from interest was also down at Rs 239.92 crore in three months to June from Rs 259.30 crore year in April-June of 2017-18.

Bank's gross bad loans as a proportion of gross loans by end-June 2018 spiked to 8.94 percent (Rs 531.05 crore), compared to 5.62 percent (Rs 354.13 crore) as on June 30, 2017.
Net NPAs were at 3.79 percent (Rs 212.84 crore), up from 3.15 percent (Rs 193.12 crore). Provisions an contingencies increased to Rs 65.01 crore in the quarter, as against Rs 18.66 crore in same period year earlier. Provision coverage ratio was at 79.45 percent as on June 30, 2018.
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Dhanlaxmi Bank Q4 result, posts profit of Rs9 crore

Private sector lender Dhanlaxmi Bank on Tuesday reported a profit of Rs9 crore for the March quarter of the last fiscal as it managed to rein in non-performing assets (NPAs).
In comparison, the bank had registered a loss of Rs131.60 crore for the fourth quarter of the previous fiscal, 2015-16. However, the total income during the January-March quarter of 2016-17 declined to Rs296.34 crore, as against Rs323.98 crore in the same period a year ago, Dhanlaxmi Bank said in a regulatory filing.

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Dhanlaxmi Bank Q1 Result, posts Rs 5.73 cr profit

Dhanlaxmi Bank   today reported a profit of Rs 5.73 crore for the first quarter ending June 2016 against a loss of Rs 22.71 crore in the same quarter of previous fiscal. 

Income of the bank fell to Rs 300.78 crore during April-June, from Rs 334.17 crore in the year-ago period. The bank improved upon on its bad loan portfolio, as gross non performing assets (NPAs) came down to 7.02 percent of gross advances as on June 2016 against 8.45 percent year ago. 

In value terms, gross NPAs were Rs 475.49 crore, down from Rs 627.28 crore year ago. Net NPAs too were down at 3.04 percent (Rs 197.66 crore) as on June 2016 from 4.22 percent (Rs 299.52 crore) year ago. 

The bank said it had assigned certain non performing financial assets to asset reconstruction companies during the previous fiscal. "In terms of RBI circular on prudential norms on income recognition, asset classification and provisioning pertaining to advances, the shortfall arrived at by deducting sales consideration from the net book value of the financial assets is amortized over a period of two years. 
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Dhanlaxmi Bank Q4 loss narrows to Rs 131.6 cr

Dhanlaxmi Bank 's net loss decreased to Rs 131.6 crore in the last quarter of 2015-16 ended March 31, 2016 against that of Rs 266.61 crore in the same period a year ago. 

Total income of the bank declined by 3.8 percent to Rs 323.98 crore in the reported quarter from Rs 337.05 crore a year ago, the bank said in a BSE filing. 

For the year ended March 31, 2016, net loss of the bank narrowed to Rs 209.45 crore from Rs 241.47 crore at the end of 2014-15. 

Total annual income of the company during period under review declined to Rs 1281 crore from Rs 1368.54 crore, it said.
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