Thrissur, India | February 4, 2025
Dhanlaxmi Bank Limited (BSE: | NSE: ), a leading private sector bank, has announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The results were approved by the Board of Directors on February 4, 2025.
Key Financial Highlights (₹ in Lakh)
Quarterly Performance (Q3 FY25 vs. Q3 FY24)
| Particulars | Q3 FY25 (31-Dec-24) | Q2 FY25 (30-Sep-24) | Q3 FY24 (31-Dec-23) | YoY Growth (%) |
|---|
| Interest Earned | 33,459 | 32,883 | 30,772 | +8.74% |
| - Interest on Advances | 27,589 | 25,088 | 24,916 | +10.73% |
| - Income on Investments | 4,983 | 5,806 | 5,492 | -9.26% |
| Total Income | 37,679 | 38,064 | 34,342 | +9.71% |
| Operating Profit (Before Provisions & Contingencies) | 2,658 | 3,313 | 1,116 | +138.2% |
| Net Profit | 1,985 | 2,581 | 305 | +550.8% |
Nine-Month Performance (9M FY25 vs. 9M FY24)
| Particulars | 9M FY25 (31-Dec-24) | 9M FY24 (31-Dec-23) | YoY Growth (%) |
|---|
| Interest Earned | 96,276 | 90,076 | +6.88% |
| Total Income | 1,09,537 | 1,01,225 | +8.21% |
| Net Profit | 3,766 | 5,451 | -30.91% |
Segment-Wise Performance
| Business Segment | Revenue (₹ Lakh) Q3 FY25 | Q2 FY25 | Q3 FY24 | YoY Growth (%) |
|---|
| Treasury | 5,923 | 6,927 | 6,365 | -6.94% |
| Retail Banking | 21,619 | 21,960 | 18,347 | +17.84% |
| Corporate/Wholesale Banking | 9,920 | 8,843 | 9,330 | +6.32% |
| Other Banking Operations | 217 | 334 | 300 | -27.67% |
Retail Banking remained the key driver of growth, while Treasury income witnessed a decline due to market volatility.
Key Ratios & Asset Quality
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|
| Capital Adequacy Ratio (Basel III) | 12.79% | 13.06% | 12.37% |
| Gross NPA (₹ Lakh) | 40,111 | 42,126 | 49,543 |
| Net NPA (₹ Lakh) | 9,506 | 12,032 | 12,625 |
| Net NPA Ratio (%) | 3.53% | 3.82% | 4.87% |
The bank's asset quality improved with a decline in Gross NPA and Net NPA, showcasing better credit risk management.
Corporate Developments
- Rights Issue: The bank successfully closed a rights issue, offering 1.41 crore equity shares at ₹120 per share, raising ₹288.59 crore.
- Provision Coverage Ratio (PCR): Improved to 90.9% as of December 31, 2024.
- Regulatory Compliance: The bank continues to comply with RBI guidelines and has made Pillar 3 disclosures related to capital adequacy and risk management.
Management Commentary
Ajith Kumar K K, Managing Director & CEO of Dhanlaxmi Bank, stated:
"We are pleased with our operational performance in Q3 FY25. The improvement in asset quality, alongside consistent growth in Retail and Corporate Banking segments, showcases our commitment to sustainable banking. We remain focused on strengthening our balance sheet while optimizing profitability."
Strategic Outlook
Dhanlaxmi Bank is poised for growth through:
- Expanding Retail and Corporate Banking segments.
- Digital Banking Initiatives to enhance customer experience.
- Maintaining a strong asset quality with controlled NPAs.
With a stable capital base and continued business growth, the bank aims to improve profitability in the upcoming quarters.
Conclusion
Dhanlaxmi Bank delivered a strong Q3 FY25 performance, reporting
550.8% YoY growth in net profit, driven by robust interest income and disciplined cost management. The bank’s improved asset quality and successful capital raising further reinforce its financial strength and long-term growth potential.
Stock Market Impact: Investors and stakeholders will closely monitor Dhanlaxmi Bank’s upcoming earnings trajectory, particularly focusing on loan growth, asset quality, and margin expansion.