Dhanlaxmi Bank Posts 20% Profit Jump on Strong Loan Growth

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AuthorVihaan Mehta|Published at:
Dhanlaxmi Bank Posts 20% Profit Jump on Strong Loan Growth
Overview

Dhanlaxmi Bank reported solid third-quarter results, posting a 20% year-on-year increase in net profit to ₹24 crore and a 20% rise in net interest income to ₹154 crore. The bank also demonstrated improved asset quality, with gross NPAs falling sequentially to 2.36%. Total business grew by over 20%, driven by strong advances in gold loans and MSME portfolios.

Earnings Momentum

Dhanlaxmi Bank has posted a steady set of financial results for the third quarter, highlighting a significant 20% year-on-year increase in net profit, which reached ₹24 crore. This uptick from ₹20 crore in the prior year's comparable period was complemented by a similar 20% rise in net interest income (NII), swelling to ₹154 crore.

Asset Quality Gains

The bank's operational efficiency is further underscored by an improvement in its asset quality metrics. Gross non-performing assets (GNPA) saw a sequential decline, dropping to 2.36% from 3.10% in the previous quarter. Net NPAs remained largely stable, holding at 1.11% compared to 1.12% in the preceding quarter.

Business Growth Drivers

This positive earnings trajectory was supported by robust business growth. Dhanlaxmi Bank's total business expanded by 20.76% year-on-year, reaching ₹31,933 crore as of December 31, 2025. Total deposits increased by 18.39% to ₹17,839 crore, bolstered by a modest rise in low-cost Current Account Savings Account (CASA) deposits, which grew 9.04% to ₹5,018 crore.

Advances Accelerate

On the lending front, gross advances climbed substantially by 23.90% year-on-year to ₹14,094 crore. This stronger credit offtake was notably led by the gold loan portfolio, which surged by an impressive 50.89% to ₹5,361 crore. The bank's MSME loan book also demonstrated healthy expansion, growing 27.72% year-on-year to ₹2,064 crore, reflecting a strategic focus on increasing credit to small and medium enterprises.

Market Performance

Shares of Dhanlaxmi Bank Ltd. traded at ₹25.17 on the NSE around 2:45 pm, marking a 1.00% increase for the day after touching an intraday high of ₹26.69.

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