Dhanlaxmi reports Rs6 cr Q1 profit, thanks to treasury

THRISSUR: Dhanlaxmi Bank reported a small net profit of Rs6.09 crore for the first quarter (Q1) of the current financial year, FY21, compared with Rs19.84 crore a year earlier and a loss of Rs17.10 crore a quarter ago.

But for a decent income (profit before tax) from the treasury operations, the bank would have ended up with a loss for the quarter like it did in the previous quarter.

Though the core operations of the bank are lending, the net income from the retail and corporate lending was trivial. While the profit before tax from retail banking was Rs4.59 crore, corporate banking handed out a loss of Rs2.69 crore.

The treasury operations came to the rescue of the bottom line with a pre-tax income of Rs41.21 crore for the quarter, thanks to the falling interest rate scenario in the system.

Though the bank generated a decent operating profit of Rs43.11 crore for the quarter under review, the large provisions (other than tax) to the tune of Rs37.02 crore nullified it.

The bank is yet to be relieved from the clutches of NPAs. The bank still carries 6.89 per cent gross NPA and 2.18 per cent net NPA though it is less than a year ago.

 

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