Dhanlaxmi Bank Q1 net profit rises 11.5 pc to Rs 6.79 cr

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.

Private sector lender Dhanlaxmi Bank on Wednesday reported a nearly 11.5 percent 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 percent 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 percent to Rs 107.36 crore, treasury income declined over 29 percent 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 percent of the gross advances as of June 30, 2021, as against 6.89 percent 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 percent (Rs 300.86 crore) compared to 2.18 percent (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.

Following 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 percent, Dhanlaxmi Bank said.

The capital adequacy ratio improved to 14.57 percent at the end of June 2021 from 13.94 percent a year ago.

Shares of the bank were trading 3.13 percent down at Rs 17.05 apiece on BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)