Dhanlaxmi Bank demonstrates robust financial health and expansion in FY 2023-24
Dhanlaxmi Bank Limited, based in Thrissur, Kerala, has announced a significant upswing in its financial performance for the quarter and nine months ending December 31, 2023. The bank reported a net profit of Rs.54.51 crore for the nine months, marking a substantial increase of 387.13% from the Rs.11.19 crore net profit recorded in the same period of the previous financial year. This robust growth underscores the bank’s successful strategies and strong operational performance amidst a challenging economic landscape.
Financial Highlights and Year-on-Year Growth
The bank’s financial results reveal impressive year-on-year growth across several key metrics:
– Net Profit surged by 387.13% to Rs.54.51 crore.
– Operating Profit increased by 22.70% to Rs.103.85 crore.
– Interest Income rose by 13.00% to Rs.900.76 crore.
– Other Income saw a significant jump of 200.27% to Rs.111.49 crore.
– Total Income grew by 21.34% to Rs.1012.25 crore.
These figures illustrate Dhanlaxmi Bank’s strong financial health and its ability to generate increased profits and operational efficiency.
Dhanlaxmi Bank Records Stellar Performance in Financial Year 2023-24
Asset Quality and Capital Adequacy Show Improvement
The bank’s asset quality has shown notable improvement, with Gross Non-Performing Assets (NPA) decreasing from 5.83% to 4.81% and Net NPA dropping from 1.82% to 1.27% year-on-year. Additionally, the Provision Coverage Ratio improved from 86.57% to 88.64%. The Capital to Risk (Weighted) Assets Ratio (CRAR) stands at a healthy 12.37%, indicating the bank’s solid capital adequacy and financial stability.
Expansion and Growth Prospects
Under the leadership of Managing Director and CEO Shri Shivan J K, Dhanlaxmi Bank has expanded its geographical reach, with 259 branches and 279 ATM/recyclers spread across 14 states and two Union Territories. The bank’s market capitalization improved significantly from Rs.500.96 crore to Rs.777.00 crore, reflecting the positive market conditions and the bank’s growing investor confidence.