Dhanlaxmi Bank, a private sector lender, reported a 7 per cent surge in its net profit to Rs 28.30 crore for the April-June quarter, owing mostly to a decrease in bad loans. In the previous year, the lender earned a net of Rs 26.43 crore.
According to a regulatory filing, the bank’s overall income in the first quarter of the current fiscal increased to Rs 5,857 crore from Rs 3,797 crore. Interest income for the lender climbed to Rs 341.40 crore from Rs 236.82 crore in the same quarter last year.
On the asset quality front, the bank saw an improvement, with gross non-performing assets (NPAs) falling to 5.21 per cent of gross advances by June 2023, down from 6.35 per cent the previous year.
The net NPA also fell to 1.09 per cent from 2.69 per cent the previous year. However, bad loan provisions increased to Rs 27.64 crore from Rs 21.41 crore in FY23. As of June 2023, the bank’s provision coverage ratio was 90.79 per cent.
The bank’s capital adequacy ratio increased to 12.57 per cent at the end of June, up from 12.19 per cent the previous year.
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