The stock jumped 4.97 per cent to settle at Rs 42.25 on BSE. During the day, it soared 11 per cent to Rs 44.70 - its 52-week high.
On NSE, the stock gained 4 per cent to close at Rs 42.
The company added Rs 42.6 crore to Rs 886.60 crore in its market valuation.
Dhanlaxmi Bank yesterday reported a profit of Rs 9 crore for the March quarter of last fiscal as it managed to rein in non-performing assets.
In comparison, the bank had registered a loss of Rs 131.60 crore for the fourth quarter of the previous fiscal, 2015-16.
However, the total income during the January-March quarter of 2016-17 declined to Rs 296.34 crore, as against Rs 323.98 crore in the same period a year ago.
Bank's gross bad loans or non-performing assets (NPAs) during the quarter under review declined to 4.78 per cent, from 6.36 per cent in the year-ago period.
Net NPAs at 2.58 per cent also showed a slight decline, compared to 2.78 per cent a year ago.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)