NEW DELHI: Net profit of Dhanlaxmi Bank declined 73.88% to Rs 3.66 crore in the quarter ended September 2021, mainly on account of rise in provisions due to a spike in bad loans. The private sector bank had posted a net profit of Rs 14.01 crore in the corresponding period a year ago.
Total operating income declined 6.13% to Rs 229.01 crore as against Rs 243.97 crore during the previous quarter ended September 2020. Total income of the bank during the July-September period of 2021-22, however, grew to Rs 266.59 crore from Rs 249.66 crore in the same period of 2020-21, Dhanlaxmi Bank said in a regulatory filing.
Interest income was down at Rs 229 crore in Q2FY22 from Rs 243.97 crore in Q1FY21, even as the other income was higher at Rs 37.58 crore, as against Rs 5.69 crore. Provisions for the bad loans and contingencies for the reported quarter rose to Rs 22.40 crore from Rs 4.29 crore in September 2020.
The bank’s gross non-performing assets (NPAs) rose to 8.67% of the gross advances as of September 30, 2021, from 6.36% in the year-ago same period. However, sequentially gross NPAs were down compared to 9.27% in June 2021 quarter. Value-wise, the gross NPAs were worth `604.15 crore, up from Rs 448.72 crore. Net NPAs too rose to 4.92% (Rs 329.55 crore) from 1.66% (Rs 111.45 crore).