Provision coverage ratio (PCR) at record 89.1 pc
KOCHI: Dhanlaxmi Bank, the smallest among the listed banks from Kerala, has not only succeeded in wiping off all the traces of its prompt corrective action (PCA) period in the past, but has come of age with a net profit of Rs21.28 crore for the third quarter (Q3) compared with Rs16.90 crore, growing 26 pc year-on-year, and flaunting one of the highest provision coverage ratios (PCR) in the country at 89.31 per cent.
The net profit for the nine month period ending December 31, 2019 was Rs63.18 crore compared with a loss of Rs15.95 crore the bank posted for the comparable nine-month period last year.
But having said that, the high gross non-performing assets (NPA) at 7.13 per cent (as of December 31, 2019), though has fallen marginally from 8.11 per cent a year ago, may still pose an irritant to the bank going forward.
Dhanlaxmi Bank’s interest income improved for the third quarter to Rs250.88 crore from Rs245.08 crore a year ago though was marginally down from Rs253.34 crore in the previous quarter ending September 30, 2019.
While the Q3 operating profit improved from Rs37.07 crore to Rs45.63 crore year on year, net NPA during the quarter under review fell from Rs173.58 crore to Rs105.21 crore – representing a decrease from 2.93 per cent to 1.62 per cent.
