Dhanlaxmi Bank on Monday posted a 69 per cent decline in its net profit at Rs 6.09 crore for the first quarter ended June 2020 due to higher provisioning. The bank had registered a net profit of Rs 19.84 crore during the same quarter of the previous fiscal.
|Q1FY21 (in crores)||Q1FY20 (in crores)||Change|
Net Interest income was down at Rs 236.65 crore in the June quarter from Rs 240.43 crore a year ago. There was a decline in income from investments, income from interest on balances with RBI and other interbank funds.
Bank’s provisioning for bad loans and contingencies spiked to Rs 37.02 crore during the reported quarter of FY21 as against Rs 9.27 crore a year ago. However, it was lower from the previous quarter’s Rs 56.89 crore.
Net NPAs reduced to 2.18 per cent (Rs 140 crore) from 2.35 per cent (Rs 145.20 crore).
In conclusion, Dhanlaxmi Bank is hopeful that despite the COVID-19 related challenges in the economy, there is not likely to be any significant impact on the liquidity position of the bank.
The stock of the bank closed at Rs 12.96 apiece on the BSE, up 2.29 per cent from the previous close.