Are Dhanlaxmi Bank latest results good or bad?

Jul 22 2025 07:12 PM IST
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Dhanlaxmi Bank's latest results are largely positive, with a 252.3% increase in Profit After Tax and record Net Interest Income, indicating strong operational performance. However, concerns about high non-operating income may affect the sustainability of its business model.
Dhanlaxmi Bank has reported its financial results for the quarter ending June 2025, showcasing notable operational trends. The Profit After Tax (PAT) for the quarter reached Rs 12.18 crore, reflecting a substantial year-on-year growth of 252.3%. This significant increase indicates a strong near-term outlook for the bank.

The bank's Net Interest Income also achieved a record high of Rs 139.10 crore, demonstrating consistent growth over the last five quarters. Interest earned for the quarter amounted to Rs 367.76 crore, which represents a year-on-year growth of 20.25%, highlighting robust performance in its core business operations.

On the liquidity front, Dhanlaxmi Bank reported cash and cash equivalents of Rs 992.40 crore, the highest level in the last six half-yearly periods, suggesting improved short-term liquidity. Furthermore, the Capital Adequacy Ratio (CAR) improved to 18.26%, indicating a stronger capital base relative to risk assets.

However, the bank faces challenges with non-operating income, which constituted 322.66% of Profit Before Tax, raising concerns about the sustainability of its business model.

Overall, the company saw an adjustment in its evaluation, reflecting the mixed operational trends and financial performance.
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