Dhanlaxmi Bank stocks jump 5 pc after profit rises 2-fold

Shares of Dhanlaxmi Bank on Friday rose over 5 per cent after the bank reported a nearly two-fold rise net profit for the September quarter.

Shares of the private sector lender were up 4.96 per cent at Rs 16.50 apiece on the BSE.

Similarly, on the NSE, the stock saw a rise of 5.09 per cent to Rs 16.50.

Dhanlaxmi Bank on Thursday reported nearly two-fold rise in its net profit at Rs 22.07 crore for the second quarter ended on September 30, as bad loan ratio came down.

The bank had posted a net profit of Rs 12.15 crore in the corresponding July-September quarter of the previous fiscal.

The lender made provisions for bad loans and contingencies of Rs 25.38 crore for the September quarter, while there was a de-provisioning of Rs 18.19 crore a year earlier.

The asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 7.06 per cent (Rs 476.08 crore) of the gross advances as on September 30, 2019 from 7.81 per cent (Rs 488.74 crore) a year ago.

The net NPAs were 1.65 per cent (Rs 105.34 crore), down from 2.92 per cent (Rs 173.54 crore).

Provision coverage ratio as on September 30, 2019, is 89.16 per cent, the bank said.