Money & Banking

Dhanlaxmi Bank posts ₹65.78-crore net profit in FY20

?OUR BUREAU Kochi | Updated on June 22, 2020

Thrissur-based Dhanlaxmi Bank recorded a net profit of ₹65.78 crore in the financial year ended March 31, 2020, compared to a net profit of ₹11.67 crore in the previous financial year. This is the highest net profit the bank recorded since its inception in 1927.

However, the net profit in Q4 was down at ₹2.60 crore compared to ₹21.28 crore in the corresponding period of the previous quarter due to Covid provisions. Under the general provisions of Covid-19 regulatory package, the bank had to make 5 per cent provisions on SMA accounts during March and another 5 per cent in June. However, the bank has provided 10 per cent in March itself and this has resulted in the decline in profit, said bank officials.

The annual operating profit was ₹161.97 crore against ₹94.93 crore in the previous year, registering a growth of 70.62 per cent. The total business registered a growth of 2.69 per cent at ₹17,703 crore from ₹17,239 crore in the previous year. The total deposit registered a 2.45 per cent growth and advance 6.65 per cent during FY20. The retail deposits grown by 6.65 per cent.

The net interest income increased from ₹346.77 crore to ₹373.18 crore. Asset quality improved significantly with gross NPA coming down to 5.90 per cent from 7.47 per cent and net NPA to 1.55 per cent from 2.41 per cent. Net Interest margin improved from 3 per cent to 3.21 per cent.

CRAR improved to 14.41 per cent in FY20 against 13.75 per cent in FY19. Earnings per share improved from 0.46 per cent to 2.60 per cent.

Published on June 22, 2020

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