Dhanlaxmi Bank Q1 PAT drops 69% to Rs 6 cr

Dhanlaxmi Bank declined 4.55% to Rs 12.37 after standalone net profit slumped 69.3% to Rs 6.09 crore on 8.5% rise in total income to Rs 278.62 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) dropped 69.3% to Rs 6.09 crore in Q1 FY21 as against Rs 19.84 crore in Q1 FY20. The result was declared after trading hours yesterday, 3 August 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 464.45 crore as on 30 June 2020 as against Rs 401.22 crore as on 31 March 2020 and Rs 496.48 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 6.89% as on 30 June 2020 as against 5.90% as on 31 March 2020 and 7.61% as on 30 June 2019. The ratio of net NPAs to net advances stood at 2.18% as on 30 June 2020 as against 1.55% as on 31 March 2020 and 2.35% as on 30 June 2019.

The bank's provisions and contingencies surged 299.35% to Rs 37.02 crore in Q1FY21 over Rs 9.27 crore in Q1FY20. Provision Coverage Ratio (PCR) stood at 86.78% at 30 June 2020.

With respect to COVID-19 provisioning, during March 2020, Dhanlaxmi Bank had provided Rs 37.88 crore on loans, where the moratorium was extended. Similarly, an additional amount of Rs 7.97 crore for such advances has been provided during the quarter ended, 30 June 2020 as well.

Dhanlaxmi Bank is a bank engaged in providing a range of banking and financial services. Its segments include treasury, corporate/wholesale banking, retail banking and other banking operations. The treasury services segment consists of interest earnings on investments portfolio of the bank, gain or losses on investment operations and earnings from foreign exchange business.

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