Dhanlaxmi Bank Posts ₹24.91 Crore Net Profit in Q1 FY27

Dhanlaxmi Bank reported a standalone net profit of ₹24.91 crore for the first quarter of the financial year 2026-27, marking a significant increase from ₹12.18 crore in the corresponding quarter of the previous fiscal year. The bank's total income for the quarter ended 30 June 2026 stood at ₹484.25 crore.

The bank's interest earned for Q1 FY27 reached ₹449.36 crore, while other income contributed ₹34.89 crore. Total expenses for the quarter amounted to ₹432.80 crore, including interest expended of ₹271.74 crore and operating expenses of ₹161.06 crore.

Dhanlaxmi Bank's operating profit before provisions and contingencies was ₹51.45 crore for the quarter. Provisions (other than tax) and contingencies were ₹15.91 crore, leading to a profit before tax of ₹35.54 crore.

The bank's asset quality showed improvement, with Gross Non-Performing Assets (NPA) standing at ₹286.57 crore as on 30 June 2026, representing 1.82 per cent of gross advances. Net NPAs were ₹72.61 crore, or 0.47 per cent of net advances. The provision coverage ratio, including technical write-offs, was 92.77 per cent as on 30 June 2026.

The Capital Adequacy Ratio (Basel III) for the bank was 19.19 per cent as on 30 June 2026. Earnings Per Share (EPS) for the quarter was ₹0.63. The return on assets (annualised) was 0.45 per cent.

Segmental results showed that Retail Banking generated the highest segment revenue at ₹296.70 crore, followed by Treasury at ₹75.75 crore and Corporate/Wholesale Banking at ₹108.71 crore. Segment-wise, Retail Banking reported a profit of ₹21.80 crore, while Treasury reported ₹8.90 crore.

Dhanlaxmi Bank's financial performance indicates a positive trend, with increasing total income and improving asset quality. The bank's focus on retail banking and treasury operations has contributed to its growth.

The bank's total business in FY26 was ₹33,773 crore, driven by strong loan and gold portfolio growth. This growth is expected to continue, with the bank's strategic focus on expanding its loan portfolio and improving its asset quality.

Overall, Dhanlaxmi Bank's Q1 FY27 results show a significant improvement in its financial performance, with increasing net profit and total income. The bank's focus on retail banking, treasury operations, and improving asset quality is expected to drive its growth in the future.

The bank's performance has a positive impact on the banking sector, indicating a trend of growth and improvement in asset quality. This is expected to boost investor confidence and contribute to the overall growth of the economy.

In conclusion, Dhanlaxmi Bank's Q1 FY27 results are a positive indication of the bank's growth and improvement in its financial performance. The bank's focus on retail banking, treasury operations, and asset quality is expected to drive its growth in the future, making it a significant player in the banking sector.