Money & Banking

Dhanlaxmi Bank Q2 profit rises to ₹22 crore

V Sajeev Kumar Kochi | Updated on October 31, 2019

T Latha steps down as MD and CEO

T Latha, Managing Director and CEO of Thrissur-based Dhanlaxmi Bank, tendered her resignation on Thursday. She has put in her papers citing personal reasons. The board, at a meeting held in Thiruvananthapuram on Thursday, accepted her request, and the same has been intimated to the Reserve Bank of India.

“I have decided to resign from the bank absolutely on personal reasons. I really need a break and have not yet decided on future plans,” she told BusinessLine over phone.

“The 15-month-long career with the bank has been very good, and during all five quarters, the bank has been able to make profits. This year, too, the results are excellent,” she added.

Latha had assumed charge as MD and CEO in July 2018 and was instrumental in turning around the 90-year-old bank in less than a year.

The bank registered an 81 per cent growth in net profit in Q2 of FY20 at ₹22.1 crore, when compared to ₹12.1 crore in the corresponding period of the previous fiscal. The net profit in Q1 of FY20 was ₹19.84 crore.

For the half-year ended September, the bank has reported a net profit of ₹41.91 crore, when compared to a net loss of ₹32.84 crore during the same period in the last fiscal. Net interest income in Q2 rose by 15 per cent to ₹100.6 crore, from ₹87.4 crore in Q2 of FY19.

Bank officials attribute the growth of business to the focus on retail loans and NPA recovery, caution against fresh instances of slippages, and a renewed drive to strengthen current and savings deposits and other income.

The net NPA position has improved to 1.65 per cent from 2.92 per cent on a year-on-year basis (₹173.54 crore to ₹105.34 crore). Cost of funds has come down from 5.73 per cent to 5.69 per cent.

Total provisions have come down to ₹34.65 crore from ₹46.82 crore a year ago. Business per employee is up from ₹9.34 crore to ₹10.04 crore.

Yield on advances, too, has improved from 10.46 per cent to 10.68 per cent.

Published on October 31, 2019

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