Dhanlaxmi Bank profit jumps 82% in Q2; MD & CEO quits

The bank made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter, while there was a de-provisioning of Rs 18.19 crore a year earlier.

Kerala-based Dhanlaxmi Bank on Thursday reported a year-on-year increase of 81.6 % in its net profit at Rs 22.07 crore for the July-September quarter of the current fiscal with improvement in asset quality.

In a major development a day before, the bank’s MD & CEO T Latha submitted her resignation due to personal reasons. The same has been accepted by the board and intimated to RBI, the bank said in a a regulatory filing.

The lender had posted a net profit of Rs 12.15 crore in the corresponding quarter of the previous fiscal.

The total income of the bank in the three months to September increased to Rs 276.85 crore from Rs 226.73 crore in the same quarter of 2018-19. The interest income was Rs 253.34 crore against `244.64 crore in the year-ago quarter.

The bank made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter, while there was a de-provisioning of Rs 18.19 crore a year earlier.

The asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 7.06 % (`476.08 crore) of the gross advances as on September 30, 2019 from 7.81 % (Rs 488.74 crore) a year ago.The net NPAs were 1.65%, down from 2.92% in the year-ago period.