According to a recent press report, the net profit of Dhanalaxmi Bank has increased from Rs.1.62 crore to Rs.4.35 crore as on September 30, 2011.
Reports said that the Bank’s profit has gone up due to strong growth in their income levels. The bank’s net interest income was Rs 68 crore, other income Rs 44 crore, Bad assets recovered was Rs. 17 crore and write-back in provisions was Rs 5.30 crore.
The Non Performing Assets of the Bank has decreased from 1.26 percent to 0.55 percent, the Gross NPA were lower at Rs 56 crore.
Mr. Bipin Kabra Chief Finanacial Officer said that the NPA has helped to improve the Bank in making higher provisions the ratio is from 45 percent to 70 percent. He also said that the increase in business is one of the main reasons for the hike in profit. He added saying that the bank will continue to grow further due to its lower base. He said that the bank has planned to raise equity capital by December to shore up its capital-adequacy ratio and to support expansion plans. The bank has also planned to raise Rs. 1,000 crore in FY-2012.
The bank has recently hiked base rate, or the minimum lending rate, by 25 basis points to 11 per cent, while loans under the older benchmark prime lending rate will be dearer by 50 bps at 20.75 per cent. The bank offers home loans, personal loans, vehicle loans, business loans, education loan etc.