Dhanlaxmi Bank has reported robust financial performance, with significant growth across key metrics. The bank's total business grew by 17.5% year-on-year to reach ₹30,147.00 crore.

Deposit and Advance Growth

Total deposits increased by 17% to ₹17,103.00 crore, while gross advances grew by 18% to ₹13,044.00 crore. The bank's Current Account and Savings Account (CASA) deposits rose by 6.56% to ₹4,937.00 crore, indicating an improvement in low-cost funding.

Profitability Turnaround

In a significant development, Dhanlaxmi Bank turned profitable. The bank reported a net profit of ₹12.18 crore, compared to a net loss of ₹8.00 crore in the same period of the previous year. This turnaround was supported by a substantial increase in net interest income, which jumped 39.3% to ₹139.00 crore from ₹99.89 crore in the year-ago period.

Asset Quality

There are some changes in asset quality metrics:

• Gross Non-Performing Assets (NPAs) rose to 3.22% from 2.98% in the previous quarter.
• Net NPAs increased to 1.13% from 1.00% in the previous quarter.

Market Response

The market responded positively to the bank's performance, with Dhanlaxmi Bank's shares closing 0.68% higher at ₹25.32 on the National Stock Exchange (NSE).

While the bank has shown impressive growth and a return to profitability, the change in NPAs will likely be an area of focus for management and investors. The bank's ability to maintain its growth trajectory while managing asset quality will be crucial for its long-term performance.

Dhanlaxmi Bank has reported a significant turnaround in its financial performance for the first quarter of the fiscal year, marking a return to profitability after facing losses in the same period last year. The bank's latest financial results, approved by its Board of Directors on July 21, 2025, reveal both positive strides and areas of concern.

Profit and Revenue Growth

Dhanlaxmi Bank achieved a net profit of ₹12.18 crore in Q1, showcasing a remarkable recovery from a loss of ₹8.00 crore in the corresponding quarter of the previous year. This turnaround is attributed to a substantial increase in the bank's revenue, which grew to ₹368.00 crore, up from ₹306.00 crore year-over-year, representing a growth of about 20.26%.

Key Financial Metrics

Asset Quality Concerns

Despite the positive financial performance, the bank's asset quality showed some signs of deterioration. The Gross Non-Performing Assets (GNPA) ratio increased to 3.22% from 2.98% in the previous quarter. Similarly, the Net Non-Performing Assets (NNPA) ratio rose to 1.13% from 0.99% quarter-over-quarter. However, it's worth noting that both GNPA and NNPA ratios have improved significantly compared to the same quarter last year.

Capital Adequacy and Other Highlights

The bank's capital position remained strong, with the Capital Adequacy Ratio under Basel III norms standing at 18.26%, well above the regulatory requirements. This represents a significant improvement from 13.37% in the same quarter of the previous year.

Dhanlaxmi Bank's total business (advances plus deposits) grew to ₹2,878,782 lakh as of June 30, 2025, with deposits at ₹1,656,962 lakh and advances at ₹1,221,820 lakh.

Management Commentary

While the bank's management did not provide specific comments in the available data, the turnaround in profitability and growth in business volumes suggest that the strategic initiatives undertaken by the bank are yielding positive results.

The bank's performance in the coming quarters will be closely watched by investors and analysts to assess whether this positive momentum can be sustained, particularly in light of the slight deterioration in asset quality metrics.

Dhanlaxmi Bank's ability to maintain its profitability while managing asset quality will be crucial for its long-term growth and stability in the competitive banking sector.