Dhanlaxmi Bank Q2 net profit nearly doubles to Rs 22cr

Dhanlaxmi Bank on Thursday reported a nearly two-fold rise in its net profit at Rs 22.07 crore for the second quarter ended September 30, as bad loan ratio came down. The bank had posted a net profit of Rs 12.15 crore in the corresponding July-September quarter of the previous fiscal.

Its total income in the three months to September rose to Rs 276.85 crore from Rs 226.73 crore in the same quarter of 2018-19, Dhanlaxmi Bank said in a regulatory filing. The interest income was Rs 253.34 crore, compared to Rs 244.64 crore a year ago. The private sector bank made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter, while there was a de-provisioning of Rs 18.19 crore a year earlier.

The asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 7.06 percent (Rs 476.08 crore) of the gross advances as on September 30, 2019, from 7.81 percent (Rs 488.74 crore) a year ago. The net NPAs were 1.65 percent (Rs 105.34 crore), down from 2.92 percent (Rs 173.54 crore).

The provision coverage ratio as on September 30, 2019, is 89.16 percent, the bank said. "The existing deferred tax assets (DTA) amount of Rs 37.06 crore was reviewed and it has been decided to retain the same based on current estimates.

"In accordance with the Taxation Law (Amendment) Ordinance, 2019 promulgated on September 20, 2019, a decision is yet to be taken on whether to opt for a lower tax rate to continue with the existing rate in view of the carry forward losses and consequential impact will be considered later," it said in the filing. The stock of Dhanlaxmi Bank traded 3.93 percent up at Rs 16.92 on the BSE.