Dhanlaxmi Bank Reports Strong Q3 Growth Amid Improving Asset Quality and Income Trends

Feb 04 2025 09:02 PM IST
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Dhanlaxmi Bank's financial results for the quarter ending December 2024 reveal significant growth in Profit After Tax, alongside improvements in the Gross Non-Performing Assets ratio. The bank achieved its highest Net Interest Income in five quarters, although concerns arise regarding the sustainability of its Non-Operating Income.
Dhanlaxmi Bank has recently reported its financial results for the quarter ending December 2024, showcasing notable developments in its performance metrics. The bank's Profit After Tax (PAT) reached Rs 19.85 crore, reflecting a significant year-on-year growth. Additionally, the Gross Non-Performing Assets (NPA) ratio has improved, now standing at 3.53%, marking a consistent decline over the past five quarters. This trend indicates a reduction in the proportion of stressed loans.

The bank also reported its highest Net Interest Income in the last five quarters, amounting to Rs 128.34 crore, alongside a peak in Interest Earned at Rs 334.59 crore. These figures suggest a strengthening of the bank's core business income.

However, it is important to note that the Non-Operating Income constitutes a substantial 212.27% of Profit Before Tax (PBT), raising concerns about the sustainability of this income source.

In light of these developments, Dhanlaxmi Bank has undergone an adjustment in its evaluation, reflecting the shifts in its financial landscape.

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