Dhanlaxmi Bank Q1 profit rises 11.5%

The Thrissur-based lender had reported a net profit of Rs 6.09 crore in Q1 of FY21 and Rs 5.28 crore in the preceding quarter.

Dhanlaxmi bank on Wednesday  reported a 11.5% year-on-year (y-o-y)  increase in its first quarter net profit to Rs 6.79 crore largely due to lower provisions for bad loans.The Thrissur-based lender had reported a net profit of Rs 6.09 crore in Q1 of FY21 and Rs 5.28 crore in the preceding quarter.

Provisions and contingencies have been reduced by almost 94.3 % to Rs 2.1 crore ,as against Rs 37.02 crore provided in the year-ago period. Asset quality has worsened with Gross NPA as a percentage of  gross advances was reported at 9.27% for the quarter under review as against 9.23% in the fourth quarter and 6.89% in Q1 of FY21.

Net NPA ratio is reported at 4.58 % compared to 4.76 % reported in the preceding fourth quarter and 2.18 % in the comparable quarter of last fiscal year.

In value terms, gross NPAs increased  to Rs 641.53 crore from Rs 464.45 crore in the year-ago period. The total income  for  Q1 of FY22 is seen lower by 14.2% YoY to Rs 239.02 crore, while the bank’s interest income decreased to Rs 218.10 crore and income from other sources fell to Rs 20.92 crore from Rs 41.97 crore. Provision coverage ratio (including technical write off) as of June 30, 2021, is 75.66 %.