Dhanlaxmi Bank swings to profit from loss a year ago, shares end lower

The shares of Dhanlaxmi Bank rose by 1 per cent on Tuesday after the Thrissur-based lender reported a ₹12 crore profit in the first quarter, reversing a loss of ₹8 crore in the same period a year ago. 

The shares closed 0.04 per cent lower at ₹29.01 after rising by more than 1 per cent during early trading hours. The bank registered a net profit margin of 2.99 per cent in the quarter. In the same period in 2024, the lender had a net loss margin of 2.37 per cent. 

The bank said that its total income for the quarter increased to ₹407 crore, compared to ₹338 crore reported in the same period last year. It also represented a slight increase from ₹394 crore in the last quarter. 

The bank also reported significant improvement in asset quality, with gross non-performing assets (GNPA) declining to 3.22 per cent this quarter from 4.04 per cent a year earlier. This reduction reflects a lower proportion of bad loans, which strengthens the financial institution’s balance sheet. Net NPA was 1.13 per cent in Q1 as against 1.26 per cent a year ago. 

Diluted earnings per share stood at ₹0.31 in the first quarter, compared to a loss per share of ₹0.31 in the same period last year. The bank's operating profit rose to ₹33.28 crore in Q1 FY25, against a loss of ₹3.29 crore a year ago.

Earlier this month, Dhanlaxmi Bank reported a 17 per cent increase in its gross advances to ₹12,484 crore in the quarter compared to ₹10,643 crore in Q1 2024. Gross advances represent the total sum of all loans and credit facilities extended by a bank to its customers.

The total deposits with the bank also rose by 14.7 per cent to ₹16,570 crore in the first quarter of FY25. Gold loans also saw an increase of 28 per cent to ₹4,039 crore compared to ₹3,153 crore a year ago. 

The bank also said that its Current Account Savings Account (CASA) stood at ₹4,675 crore in the quarter, representing an increase of 3.8 per cent.