Dhanlaxmi Bank Q1 Profit Doubles as NPAs Improve

Dhanlaxmi Bank reported a strong performance in the first quarter of the financial year, with its net profit more than doubling to ₹40 crore compared with ₹16 crore in the corresponding quarter of the previous year.

The improvement was supported by higher income, better asset quality and a decline in stressed loans. The bank’s total income increased to ₹667 crore during the quarter, compared with ₹586 crore in the same period last year.

The bank’s net interest income, which represents the difference between interest earned and interest paid, rose to ₹243 crore from ₹213 crore a year earlier. This growth indicates improved lending performance and income generation capacity.

Asset quality showed significant improvement during the quarter. Gross non-performing assets declined to 2.88% of gross advances, compared with 3.45% in the previous quarter. Net NPAs also improved to 0.44%, compared with 0.72% in the preceding quarter.

The reduction in bad loans reflects better recovery efforts and stronger credit risk management. Lower stressed assets can help banks improve profitability by reducing provisioning requirements and strengthening balance sheets.

The bank’s deposits increased to ₹16,175 crore, compared with ₹15,723 crore in the previous quarter, while gross advances stood at ₹10,070 crore.

The capital adequacy ratio remained healthy at 15.13%, providing support for future business growth.

Dhanlaxmi Bank’s quarterly performance highlights the importance of improving asset quality, maintaining capital strength and achieving sustainable growth in a competitive banking environment.