Dhanlaxmi Bank Q1 profit more than doubles on lower provisions

Kolkata: Dhanlaxmi Bank‘s net profit for the first quarter more than doubled at Rs 24.9 crore against Rs 12.2 crore in the year ago period, helped by higher income and a fall in provisions. The net profit was however lower than Rs 43.5 crore reported for the fourth quarter of the last fiscal.

The Kerala-based lender’s asset quality improved with gross non-performing assets ratio falling to 1.8% at the end of June from 3.2% a year prior.

The old generation private bank said its operating profit for the June quarter stood 55% higher at Rs 51.5 crore against Rs 33.3 crore earlier. The operating profit was Rs113.7 crore in the fourth quarter.

The financial results have been arrived at after considering provision for standard assets including requirements for exposures to entities with unhedged foreign currency exposures, provision for non-performing assets, provision for non-performing investments, provision for income tax and other usual and necessary provisions, the bank said in a regulatory filing.

Its total provision and contingencies for the quarter stood at Rs 15.9 crore against Rs 21.1 crore.

The bank’s total income was higher at Rs 484.3 crore as compared with Rs 407.1 crore while total expenditure was 432.8 crore vs 373.8 crore.