Dhanlaxmi Bank posts Rs 5.73 cr profit for Apr-Jun

Dhanlaxmi Bank today reported a profit of Rs 5.73 crore for the first quarter ending June 2016 against a loss of Rs 22.71 crore in the same quarter of previous fiscal.
Income of the bank fell to Rs 300.78 crore during April-June, from Rs 334.17 crore in the year-ago period.
The bank improved upon on its bad loan portfolio, as gross non performing assets (NPAs) came down to 7.02 per cent of gross advances as on June 2016 against 8.45 per cent year ago. In value terms, gross NPAs were Rs 475.49 crore, down from Rs 627.28 crore year ago.

Net NPAs too were down at 3.04 per cent (Rs 197.66 crore) as on June 2016 from 4.22 per cent (Rs 299.52 crore) year ago.
The bank said it had assigned certain non performing financial assets to asset reconstruction companies during the previous fiscal.
"In terms of RBI circular on prudential norms on income recognition, asset classification and provisioning pertaining to advances, the shortfall arrived at by deducting sales consideration from the net book value of the financial assets is amortised over a period of two years.

"Accordingly, the bank has charged to the profit and loss account an amount of Rs 1.57 crore for the quarter ended June 30, 2016 and the amortises balance of Rs 9.40 crore will be carried over and amortised over the next six quarters."

In the previous fiscal the bank has reported a net loss of Rs 209.45 crore.
Dhanlaxmi Bank stock closed at Rs 22.60, down 1.95 per cent from previous close on BSE.