Dhanlaxmi Bank posts net loss of Rs 26 cr in June qtr
Dhanlaxmi Bank on Monday reported a net loss of Rs 26.4 crore for the June 2022 quarter on higher expenses and increased provisioning.
The Thrissur-based private sector lender had posted a net profit of Rs 6.8 crore in the corresponding period of the previous fiscal.
Total income during April-June quarter of 2022-23 was down at Rs 237 crore as against Rs 246 crore in the year-ago period. The interest income, however, was up at Rs 258 crore as against Rs 218 crore.
There was a loss of income from other sources worth Rs 22 crore in the June 2022 quarter, while the same stood at Rs 28 crore in the year-ago period.
The bank's total expenditure was higher at Rs 242 crore in Q1 FY23 as against Rs 230 crore earlier.
Its asset quality improved, with gross non-performing assets (NPAs) reducing to 6.35 per cent of the gross advances at end-June 2022 from 9.27 per cent earlier.
The net NPAs were at 2.69 per cent, down from 4.58 per cent.
Despite the fall in bad assets, Dhanlaxmi Bank parked a higher sum of Rs 21.41 crore for bad loans and contingencies, as against Rs 9.31 crore in Q1 FY22.
The lender said regarding an account with outstanding of about Rs 73 crore declared as fraud during the June 2022 quarter, it had made provision of Rs 29.19 crore in the beginning of the fiscal and of Rs 11 lakh during the reported quarter. It is over and above the NPAs provisions held, it said.
Consequently, if the entire provision was made during the current quarter, the net loss would have been higher by Rs 32.84 crore, it added.
The bank has spread over four quarters the additional provisions to be made over and above the NPA provisions against this fraud account.
Provision coverage ratio (including technical write-offs) at end June 2022 stood at 81.43 per cent, the bank said.
Stock of the bank closed at Rs 12.30 apiece on BSE, up by 0.74 per cent.
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