Dhanlaxmi Bank stocks jump 5% after profit rises two-fold in September quarter, improvement in asset quality

  • Shares of the private sector lender were up 4.96% at Rs 16.50 apiece on the BSE while the stock saw a rise of 5.09% to Rs 16.50 on NSE

  • The lender made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter

  • The asset quality witnessed improvement as the gross NPAs fell to 7.06% of the gross advances as on 30 September 2019 from 7.81% a year ago

New Delhi: 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 stocks jump 5% after profit rises two-fold in September quarter, improvement in asset quality

Representational image. Reuters.

Dhanlaxmi Bank on Thursday reported nearly two-fold rise in its net profit at Rs 22.07 crore for the second quarter ended on 30 September, 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 30 September 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.

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Updated Date: Nov 01, 2019 15:07:38 IST