Dhanlaxmi Bank Oct-Dec net loss narrows to Rs 8 cr

Dhanlaxmi Bank's net loss during the third quarter ended December 31, 2016, narrowed to Rs 8.18 crore as proportion of bad loans declined.
The bank's net loss stood Rs 55.59 crore in the year-ago period.
Total income of the bank during October-December 2016-17 stood at Rs 290.22 crore, down from Rs 308.72 crore a year ago, the bank said in a regulatory filing.
There was an improvement in bank's asset quality with gross non performing assets (NPAs) falling to 7.59 per cent of gross advances during the quarter, from 9.69 per cent a year ago.
During the quarter under review, Net NPAs were 2.90 per cent, as against 4.58 per cent a year earlier.

In value terms, the private sector lender's gross NPAs were Rs 503.83 crore, over Rs 688.51 crore in the year-ago period and net NPAs stood at Rs 183.39 crore, as against Rs 308.11 crore in the year-ago quarter.

Thus, the bank had to park a lesser (amount) towards provisions and contingencies at Rs 19.23 crore, compared to Rs 46.01 crore put aside in the corresponding quarter a year ago.
In a separate filing, Dhanlaxmi Bank said its board of directors in a meeting today approved issuance of equity shares of up to Rs 120 crore on preferential allotment basis.
Stock of the bank closed 0.40 per cent down at Rs 24.95 apiece on BSE.