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Dhanlaxmi Bank Q2 declines 73% YoY to Rs 3.6 cr; provisions spike

Capital Market 

The bank posted a 73.9% decline in standalone net profit to Rs 3.66 crore in Q2 FY22 from Rs 14 crore posted in Q2 FY21.

Total income rose 6.8% to Rs 266.59 crore in Q2 FY22 from Rs 249.66 crore reported in Q2 FY21. Operating profit before provisions and contingencies rose by 42% to Rs 26 crore in Q2 FY22 over Q2 FY21. Meanwhile, profit before tax saw a sharp decline of 73.9% year on year to Rs 3.66 crore in Q2 FY22.

Provisions and contingencies saw a sharp spike of 422% year on year to Rs 22.4 crore in Q2 FY22 from Rs 4.29 crore in Q2 FY21. The bank said that during Q2 FY22 NPA for which provisions had already been made amounting to Rs 77.86 crore has been technically written off.

On the asset quality front, the ratio of gross NPAs to gross advances stood at 8.67% as on 30 September 2021 as against 9.27% as on 30 June 2021 and 6.36% as on 30 September 2020. The ratio of net NPAs to net advances stood at 4.92% as on 30 September 2021 as against 4.58% as on 30 June 2021 and 1.66% as on 30 September 2020.

Capital Adequacy Ratio stood at 13.64% as of 30 September 2021, 14.57% as of 30 June 2021 and 13.72% on 30 September 2020.

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.

Shares of Dhanlaxmi Bank rose 0.96% to Rs 15.75 in the special one-hour Muhurat trading session on Thursday, 4 November 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, November 06 2021. 16:33 IST