Dhanlaxmi Bank on Friday reported an 83% year-on-year (y-o-y) decline in its third quarter net profit to Rs 2.03 crore largely due to a drop in other income.
The Thrissur-based lender had reported a net profit of Rs 11.81 crore in Q3 of FY21 and Rs 3.66 crore in the preceding second quarter.
Asset quality has improved with Gross NPA as a percentage of gross advances reported at 7.55 % for the quarter under review as against 8.67 % in the preceding second quarter and 5.78% in the year-ago period.
Net NPA ratio is reported at 3.83 % compared to 4.92 % in the second quarter and 1.11 % in the third quarter of last fiscal year.
Managing Director & CEO JK Shivan told FE that despite a decline in profits, the bank is proceeding in the right direction.
“Our operating profit has increased quarter-on-quarter after so many quarters of decline. Now our operating income will take care of the operating expenses. The NIM has grown to 2.94%,NII has also increased and credit-deposit ratio has increased,” he said.
Provisions and contingencies have increased to Rs 26.29 crore, as against Rs 22.92 crore provided in the year-ago period and Rs 22.60 crore provided in the preceding quarter.
The total income for Q3 of FY22 is seen lower by 6.77% YoY to Rs 269.16 crore, while the bank’s interest income decreased to Rs 234.63 crore from Rs 237.36 crore in Q3FY21. Other income decreased to Rs 34.53 crore from Rs 51.35 crore in the comparable period of last fiscal.
Provision coverage ratio (including technical write off) as of December 31, 2021, is 77.55 % and the capital adequacy ratio stands at 13.13 %.
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