homefinance NewsDhanlaxmi Bank Q2 net declines 74% at Rs 3.66 cr on soaring bad assets

Dhanlaxmi Bank Q2 net declines 74% at Rs 3.66 cr on soaring bad assets

Dhanlaxmi Bank on Friday reported a near-74 per cent plunge in net profit to Rs 3.66 crore in the quarter ended September 2021, as provisions rose due to a spike in bad loans. The private sector bank had posted a net profit of Rs 14.01 crore in the corresponding period a year ago.

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By CNBC-TV18 Nov 5, 2021 4:54:34 PM IST (Published)

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Dhanlaxmi Bank Q2 net declines 74% at Rs 3.66 cr on soaring bad assets
New Delhi: Dhanlaxmi Bank on Friday reported a near-74 per cent plunge in its net profit to Rs 3.66 crore in the quarter ended September 2021, as provisions rose due to a spike in bad loans. The private sector bank had posted a net profit of Rs 14.01 crore in the corresponding period a year ago.

Total income of the bank during the July-September period of 2021-22, however, grew to Rs 266.59 crore from Rs 249.66 crore in the same period of 2020-21, Dhanlaxmi Bank said in a regulatory filing. Interest income was down at Rs 229 crore in Q2FY22 from Rs 243.97 crore in Q1FY21, even as other income was higher at Rs 37.58 crore, as against Rs 5.69 crore.
Provisions for bad loans and contingencies for the reported quarter rose to Rs 22.40 crore from Rs 4.29 crore in September 2020. The bank's gross non-performing assets (NPAs) rose to 8.67 per cent of the gross advances as of September 30, 2021, from 6.36 per cent in the year-ago same period.
However, sequentially gross NPAs were down compared to 9.27 per cent in the June 2021 quarter. Value-wise, the gross NPAs were worth Rs 604.15 crore, up from Rs 448.72 crore. Net NPAs too rose to 4.92 per cent (Rs 329.55 crore) from 1.66 per cent (Rs 111.45 crore).
"During the quarter ended September 30, 2021, NPA for which provision had already been made amounting to Rs 7,786 lakh has been technically written off," the bank said. Provision coverage ratio (including technical write-off) as of September 30, 2021 is 74.18 per cent, it added.

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