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Tuesday, February 4, 2025

Dhanlaxmi Bank Q3 Results: Profit Surges 6.5x to Rs 19.85 Crore

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Dhanlaxmi Bank Q3 Results: Net Profit Soars 6.5x YoY to Rs 19.85 Crore

Dhanlaxmi Bank has reported an impressive financial performance for the third quarter of the fiscal year 2025, with net profit surging 6.5 times year-on-year (YoY) to reach Rs 19.85 crore. This substantial increase is attributed to higher income and lower provisions, alongside an improvement in asset quality.

Key Financial Highlights of Q3FY25

  • Net profit: Increased 6.5x to Rs 19.85 crore, compared to Rs 3 crore in Q3FY24.
  • Total income: Rose to Rs 377 crore, up from Rs 343 crore in the same quarter last year.
  • Net interest income (NII): Grew by 12% to Rs 128 crore, compared to Rs 114 crore in Q3FY24.
  • Pre-provision operating profit (PPOP): Increased to Rs 26.58 crore, up from Rs 11.16 crore in the previous year.
  • Provisions: Declined to Rs 6.7 crore, compared to Rs 8.1 crore in Q3FY24.

Improved Asset Quality and NPA Reduction

Dhanlaxmi Bank demonstrated significant progress in improving its asset quality:

  • Gross Non-Performing Assets (GNPA) ratio: Dropped to 3.53% from 4.81% in the previous year.
  • Net NPA (NNPA) ratio: Improved to 0.86% from 1.27% YoY.

Rs 298 Crore Rights Issue to Strengthen Capital

In a strategic move to enhance its financial stability, the bank's board approved a Rs 298 crore rights issue. The details of the issue include:

  • Equity shares allotted: 14.17 crore at Rs 21 per share.
  • Face value per share: Rs 10.
  • Total paid-up equity capital: Increased to Rs 395 crore.

Outlook and Future Prospects

The strong Q3 performance of Dhanlaxmi Bank highlights its improving financial health and operational efficiency. With a sharp increase in profitability, enhanced asset quality, and a successful rights issue, the bank is well-positioned for future growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not constitute financial advice. Investing in equities involves risks, and readers should conduct their own research or consult a qualified financial advisor before making investment decisions. We are not responsible for any financial losses incurred based on this article.

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