Crisis-ridden Dhanlaxmi Bank has recorded a 100 per cent growth in Q2 net profit at ₹12.15 crore in FY19, compared to ₹6.06 crore in the corresponding period of the previous fiscal.
The focus on NPA recovery and fresh advances are some of the contributing factors for the good show. The bank would continue to focus on more recovery of NPAs and advances as well as current account and savings accounts to further improve the business, said T Latha, Managing Director and CEO.
“The two teams constituted for the prevention of fresh slippages and recovery has worked well. The recovery this time was good at more than ₹76 crore. One more team has been constituted this quarter for sourcing of good applications, small ticket advances for retail and MSMEs particularly,” she told BusinessLin e.
She said the gross NPA ratio stood at 7.81 per cent, while net NPA came down to 2.92 per cent. NPAs have started coming down in the last two years. In 2017, net NPA was 3.67 per cent. The bank’s cost of deposit has also come down to 5.55 per cent in September this year from 5.96 per cent in September 2017.