Dhanlaxmi Bank Shares Soar 8% on Robust Q3 Growth in Deposits, Advances

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AuthorRiya Kapoor|Published at:
Dhanlaxmi Bank Shares Soar 8% on Robust Q3 Growth in Deposits, Advances
Overview

Dhanlaxmi Bank shares surged nearly 8% after reporting strong Q3 business performance. Total business grew 20.76% year-on-year to ₹31,933 crore by December 31, 2024. Deposits rose 18.39% and advances climbed 23.90%, driven by gold and MSME loans, indicating healthy credit offtake.

Q3 Business Momentum Accelerates

Dhanlaxmi Bank shares climbed nearly 8% on Monday, January 5, following a robust third-quarter business update that highlighted steady improvement across key financial metrics. The Kerala-based lender reported a significant year-on-year increase in total business, reflecting strong operational momentum.

Loan Portfolio Shows Robust Growth

For the quarter ended December 31, 2024, Dhanlaxmi Bank's total business expanded by 20.76% to ₹31,933 crore. Total deposits saw an 18.39% rise, reaching ₹17,839 crore, buoyed by a modest uptick in low-cost current account and savings account (CASA) deposits, which grew 9.04% to ₹5,018 crore. On the lending front, gross advances jumped 23.90% to ₹14,094 crore, signaling robust credit offtake.

Gold and MSME Loans Drive Advances

The growth in gross advances was particularly strong in secured retail segments. The gold loan portfolio surged by 50.89% year-on-year to ₹5,361 crore, underscoring sustained demand. The Micro, Small, and Medium Enterprises (MSME) loan book also expanded by 27.72% to ₹2,064 crore, demonstrating the bank's focus on expanding credit to the small business sector.

Consistent Performance Across Quarters

This latest update follows a strong second quarter for Dhanlaxmi Bank. In the September 2024 quarter, total business had risen 17.5% to ₹30,147 crore, with deposits growing 17% and advances up 18%. CASA deposits in Q2 had increased 6.56% to ₹4,937 crore.

Market Reacts Positively

The positive business update spurred investor interest, with Dhanlaxmi Bank shares trading up by 7.9% to an intraday high of ₹26.95. The stock was trading at ₹26.28 around 11 am on Monday.

Provisional Nature of Figures

Dhanlaxmi Bank noted that all figures provided are provisional and subject to review and audit by its statutory auditors.

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