Thriving Despite Headwinds: Dhanlaxmi Bank's June Quarter Sees Robust Growth

Dhanlaxmi Bank delivered a strong set of results for the quarter ended June 2025, demonstrating resilience with an impressive rise in interest income and prudent provisioning.

 

Key Highlights

Interest Earned Jumps: The bank reported interest earned of ₹3.68 billion for the June quarter, underscoring healthy growth in core banking operations.

 

Prudent Provisions: Provisions and contingencies stood at ₹211 million, reflecting continued caution amid evolving market realities.

 

Net Profit Returns: Dhanlaxmi Bank returned to profitability, posting a net profit of ₹121.8 million for Q1FY26 after managing higher provisions.

 

Asset Quality Holds: Gross NPA ratio improved to 3.22%, indicating enhanced credit quality.

 

Turnaround Momentum: The bank reversed its fortunes from the previous year's loss and is showing consistent improvement as asset quality stabilizes.

 

Summary

Dhanlaxmi Bank's Q1 performance signals a robust revival, driven by higher interest income and strict vigilance on provisioning. The results showcase the lender's ability to grow its earnings while safeguarding asset quality, positioning it for continued improvement in future quarters.

 

Source: Marketscreener, Economic Times