Dhanlaxmi Bank's Q4 PAT jumps 9%, net interest income declines 9%

Dhanlaxmi Bank on Wednesday announced a 91% year-on-year (YoY) decline in its fourth-quarter net profit at ₹3.31 crore. Net interest income (NII), the difference between interest earned and interest expended, fell 9% YoY to ₹104.86 crore during the quarter. Shares of the company were trading over 3.5% lower on Thursday.

The bank reported a 12% rise in its total income at ₹347 crore during the quarter. Asset quality improved with the gross non-performing assets (NPA) ratio coming down to 4.05% as compared to 5.19% during the same period of the previous fiscal. However, net NPA ratio increased to 1.25% as compared to 1.16% in Q4FY23.

For the full fiscal year 2024, the lender reported a 17% rise in its net profit to ₹58 crore. NII, however, declined 4% to ₹458 crore during the year. Total income for the year rose 19% to ₹1,360 crore.

While the gross NPA declined to 4.05% in FY24 as compared to 5.19% in FY23, the net NPA rose to 1.25% during the year as against 1.16% in financial year 2022-23. During FY24, the bank recovered ₹30.18 crore from written off accounts.

The lender said its total business went up 6% to ₹24,687 crore during the year. Its capital adequacy ratio as of March 31, 2024 as per the Reserve Bank of India (RBI) guidelines on Basel III norms stood at 12.71% with tier-1 capital adequacy ratio at 11.36%.

Total deposits of the bank grew 7% to ₹14,290 crore as on March 31, 2024. The share of current accounts savings accounts (CASA) in total deposits stood at 31% as of the end of the fiscal. Retail term deposits increased 9% to ₹7,190 crore as on March 31, 2024.

Meanwhile, gross advances rose 6% to ₹10,397 crore by end-FY24. Gold loans grew 25% to ₹2,839 crore as of March 31, 2024.

Shares of the bank have gained over 37% since the beginning of the year. The stock has gained nearly 148% in the last one year.