Dhanlaxmi Bank stocks jump 5 pc after profit rises 2-fold

Shares of Dhanlaxmi Bank on Friday rose over 5 percent after the bank reported a nearly two-fold rise net profit for the September quarter. Shares of the private sector lender were up 4.96 percent at Rs 16.50 apiece on the BSE.

Similarly, on the NSE, the stock saw a rise of 5.09 percent to Rs 16.50. Dhanlaxmi Bank on Thursday reported a nearly two-fold rise in its net profit at Rs 22.07 crore for the second quarter ended on 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. The lender 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).

Provision coverage ratio as on September 30, 2019, is 89.16 percent, the bank said.