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What is the story about?
Private sector lender Dhanlaxmi Bank
kicked off FY27 on a strong note, reporting a sharp rise in profitability for the quarter ended June 30, 2026, backed by healthy growth in lending, higher interest income and an improvement in asset quality.
The lender's net profit more than doubled to ₹25 crore in the June quarter from ₹12 crore a year earlier, while net interest income (NII) climbed 27.2% year-on-year to ₹177 crore from ₹139 crore.
Total income for the quarter stood at ₹484.25 crore, with interest earned contributing ₹449.36 crore and other income adding ₹34.89 crore. Total expenses came in at ₹432.80 crore, including ₹271.74 crore towards interest expenses and ₹161.06 crore in operating costs.
Asset quality continued to strengthen during the quarter. Gross non-performing assets (GNPA) improved to 1.82% as of June 30, 2026, from 1.89% at the end of March, while net NPAs declined to 0.47% from 0.51%. In absolute terms, gross NPAs stood at ₹286.57 crore, while net NPAs were ₹72.61 crore.
The bank also maintained a comfortable capital position, with its capital adequacy ratio (CAR) improving to 19.19% from 18.92% in the previous quarter.
Retail Banking remained the bank's biggest earnings driver, generating revenue of ₹296.70 crore and a segmental profit of ₹21.80 crore. Treasury contributed revenue of ₹75.75 crore and profit of ₹8.90 crore, while the Corporate and Wholesale Banking segment reported revenue of ₹108.71 crore.
The quarterly earnings build on the bank's strong provisional business update released earlier this month. As of June 30, total business rose 21.12% year-on-year to ₹35,188 crore, driven by a 17.1% increase in deposits to ₹19,403 crore and a 26.47% jump in gross advances to ₹15,785 crore.
The lender also continued to witness healthy traction across key lending segments. CASA deposits grew 19.55% year-on-year to ₹5,589 crore, while the gold loan portfolio surged nearly 76% to ₹7,105 crore. MSME advances rose 29.24% to ₹2,250 crore, reflecting broad-based credit growth.
Despite the strong financial performance and improving balance sheet metrics, investors appeared unconvinced. Shares of Dhanlaxmi Bank came under pressure following the results, slipping to an intraday low of ₹31.11, down about 13.5% from the day's high of ₹35.97 on the NSE at around 2:37 pm, suggesting profit booking after the stock's recent run-up.
The lender's net profit more than doubled to ₹25 crore in the June quarter from ₹12 crore a year earlier, while net interest income (NII) climbed 27.2% year-on-year to ₹177 crore from ₹139 crore.
Total income for the quarter stood at ₹484.25 crore, with interest earned contributing ₹449.36 crore and other income adding ₹34.89 crore. Total expenses came in at ₹432.80 crore, including ₹271.74 crore towards interest expenses and ₹161.06 crore in operating costs.
Asset quality continued to strengthen during the quarter. Gross non-performing assets (GNPA) improved to 1.82% as of June 30, 2026, from 1.89% at the end of March, while net NPAs declined to 0.47% from 0.51%. In absolute terms, gross NPAs stood at ₹286.57 crore, while net NPAs were ₹72.61 crore.
The bank also maintained a comfortable capital position, with its capital adequacy ratio (CAR) improving to 19.19% from 18.92% in the previous quarter.
Retail Banking remained the bank's biggest earnings driver, generating revenue of ₹296.70 crore and a segmental profit of ₹21.80 crore. Treasury contributed revenue of ₹75.75 crore and profit of ₹8.90 crore, while the Corporate and Wholesale Banking segment reported revenue of ₹108.71 crore.
The quarterly earnings build on the bank's strong provisional business update released earlier this month. As of June 30, total business rose 21.12% year-on-year to ₹35,188 crore, driven by a 17.1% increase in deposits to ₹19,403 crore and a 26.47% jump in gross advances to ₹15,785 crore.
The lender also continued to witness healthy traction across key lending segments. CASA deposits grew 19.55% year-on-year to ₹5,589 crore, while the gold loan portfolio surged nearly 76% to ₹7,105 crore. MSME advances rose 29.24% to ₹2,250 crore, reflecting broad-based credit growth.
Despite the strong financial performance and improving balance sheet metrics, investors appeared unconvinced. Shares of Dhanlaxmi Bank came under pressure following the results, slipping to an intraday low of ₹31.11, down about 13.5% from the day's high of ₹35.97 on the NSE at around 2:37 pm, suggesting profit booking after the stock's recent run-up.
