Dhanlaxmi Bank Q1 net profit at Rs 28 crore

The net NPA declined to 1.09 per cent against 2.69 per cent in the year-ago period.

Private sector Dhanlaxmi Bank on July 31 recorded a net profit of Rs 28.30 crore in the April-June quarter, mainly due to a decline in bad loans.

The lender had posted a net of Rs 26.43 crore in the year-ago period. The total income in the first quarter of the current fiscal rose to Rs 5,857 crore against Rs 3,797 crore, UCO Bank said in a regulatory filing. The lender’s interest income also increased to Rs 341.40 crore from Rs 236.82 crore in the same quarter a year ago.

On the asset quality side, the bank witnessed improvement with the gross non-performing assets (NPAs) easing to 5.21 per cent of the gross advances by June 2023 from 6.35 per cent a year ago. The net NPA too declined to 1.09 per cent against 2.69 per cent in the year-ago period.

However, provisions for bad loans increased to Rs 27.64 crore as compared to Rs 21.41 crore in FY23. Provision Coverage Ratio of the bank stood at 90.79 per cent as of June 2023. The capital adequacy ratio of the bank improved to 12.57 per cent at the end of June from 12.19 per cent a year ago.