Earnings Review
Dhanlaxmi Bank PAT jumps eightfold; asset quality improves
This story was originally published at 15:27 IST on 9 May 2025
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--Dhanlaxmi Bank Jan-Mar net profit INR 289.80 mln vs INR 33.10 mln year ago
--Dhanlaxmi Bank Jan-Mar total income INR 3.94 bln vs INR 3.47 bln year ago
--Dhanlaxmi Bank FY25 net profit INR 666.40 mln vs INR 578.20 mln year ago
--Dhanlaxmi Bank net NPA ratio 0.99% as on Mar 31 vs 0.86% qtr ago
--Dhanlaxmi Bank gross NPA ratio 2.98% as on Mar 31 vs 3.53% qtr ago
--Dhanlaxmi Bank FY25 total income INR 14.89 bln vs INR 13.60 bln year ago
--Dhanlaxmi Bank Basel III capital adequacy ratio 16.12% as on Mar 31
--Dhanlaxmi Bank provision coverage ratio at 88.84% as on Mar 31
By Ashna Mariam George
MUMBAI – A fall in operating expenses coupled with steady interest income helped Dhanlaxmi Bank post a significant rise in net profit for the March quarter. The Kerala-based bank's net profit for the reporting quarter surged eightfold on year to INR 289.80 million.
The bank's net profit for the previous quarter was INR 198.50 million. The lender announced its financial result in market hours. At 1447 IST, shares of the bank were up 0.9% at INR 27.44 on the National Stock Exchange.
The bank's operating expenses for the March quarter fell over 15% on year, led by a 32% fall in employee costs. The bank's operating expenses in Jan-Mar were INR 1.39 billion, and employee cost was INR 710.50 million. The bank's total expenditure excluding provisions fell nearly 3% on year to INR 3.55 billion.
A steady rise in interest income also supported the lender's net profit for the reporting quarter. Dhanlaxmi Bank's interest earned rose nearly 15% on year to INR 3.51 billion in Jan-Mar. Its total income for the reporting quarter rose over 13% on year to INR 3.94 billion.
Additionally, the bank had a tax reversal of INR 18 million in the quarter, as against a tax expenditure of INR 74 million a year ago.
The bank made provisions of INR 115 million in the latest quarter, compared to a writeback of INR 281.50 in the year-ago quarter. Its operating profit for Jan-Mar was INR 386.80 million, against a loss of INR 174.40 million a year ago.
An improvement in asset quality also boosted the bank's performance in Jan-Mar. Its gross non-performing asset ratio improved to 2.98% as of Mar. 31, down from 3.53% a quarter ago, and sharply down from 4.05% a year ago. The lender's net non-performing asset ratio stood at 0.99% as of Mar. 31, slightly higher than 0.86% in the previous quarter but lower than 1.25% a year ago.
For the financial year 2024-25 (Apr-Mar), Dhanlaxmi Bank reported a net profit of INR 666.40 million, up over 15%. The lender's total income for FY25 rose about 10% to INR 14.89 billion.
The provision coverage ratio, including cover for technically written-off accounts, was 88.84% as of Mar. 31. The bank's Basel-III capital adequacy ratio was 16.12% as of the end of March. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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