Financial Daily from THE HINDU group of publications
Saturday, May 27, 2006
Financial Daily from THE HINDU group of publications Saturday, May 27, 2006 |
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Money & Banking
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Financial Performance Corporate Results - Private Banks Dhanalakshmi Bank posts Rs 9.51-cr net Our Bureau
Kochi , May 26 Dhanalakshmi Bank has posted a net profit of Rs 9.51 crore for 2005-06, as against net loss of Rs 21.60 crore for the previous year. The operating profit grew by 53 per cent to Rs 28.24 crore (Rs 18.45 crore). The board has recommended a dividend of seven per cent. The bank was able to record a major turnaround through aggressive NPA recovery, enhanced non-interest and interest income during the year, Mr P.S. Prasad, Managing Director said at press conference in Thrissur. The bank was able to recover Rs 38 crore in impaired assets and virtually double non-interest income from Rs 14.72 crore to Rs 27.05 crore, giving special emphasis on fee-based income and cross selling efforts. The total income of the bank increased by 14.5 per cent to Rs 236.94 crore, while total expenditure stood at Rs 208.70 crore. Improving the interest spread further, the cost of funds declined to Rs 5.19 per cent, even as the average yield on advances grew to 9.44 per cent.
However, the capital adequacy ratio declined from 10.16 to 9.75 per cent. "During the last year we were single-mindedly pursuing a turnaround in the bank", Mr A.D. Navaneethan, Chairman of the bank, said. "This year, our endeavour will be to increase the capital base of the bank." The bank will be pursuing all avenues including public issue, rights issue as well as inorganic growth path of merger with some other bank.
More Stories on : Financial Performance | Private Banks
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