Q4 profit at Rs2.6 cr; Bank enjoys highest PCR in state at 90pc
KOCHI: The Thrissur-based Dhanlaxmi Bank has posted a net profit of Rs2.60 crore for the fourth quarter with the help of Rs19.70 crore write-back on account of the deferred tax assets (DTA), despite logging a loss before tax of Rs17.10 crore for the period.
The Q4 net profit last year was Rs27.11 crore. The bank has reported a net profit of Rs65.78 crore for the full year 2019-20 (FY20) compared with Rs11.67 crore the bank turned in for the financial year 2018-19.
The bank that has come out of RBI’s prompt corrective action (PCA) regime more than a year ago, in February 2019, has not been able to achieve much, since then, except for a small improvement on the NPA front.
That said, the bank enjoys the highest provision coverage ratio (PCR), at 89.87 per cent, among all banks in the state.
While the gross NPA declined from Rs495.84 crore to Rs401.22 crore – 7.47 per cent to 5.9 per cent, the net NPA fell from Rs151.7 crore to Rs100.94 crore, representing a reduction from 2.41 per cent to 1.55 per cent.
Among the operating expense heads, the employment cost for Q4 increased by a half to Rs49.28 crore from Rs32.95 crore the bank incurred during the comparable quarter last year.
The employment cost for full year, FY20, was Rs184.62 crore compared with Rs161.43 crore the bank spent on its employees during the last year.
The provision (other than tax) for the fourth quarter surged by two and half times, year on year, from Rs16.27 crore to Rs58.89 crore and this has certainly impacted the profitability during the quarter under review.
While the paid up capital of the bank as of March 31, 2020 was Rs253.01 crore, the total shareholders’ equity was to the tune of Rs434.75 crore, whereas the capital adequacy ratio (CAR) was 14.41 per cent. The bank had an asset base of Rs12,263 crore as of March 31, 2020.