Kerala-based Dhanlaxmi Bank Ltd reported a steady set of earnings for the third quarter, with net profit rising 20% year-on-year and asset quality improving
on a sequential basis.
The bank posted a net profit of ₹24 crore for the quarter, compared with ₹20 crore in the year-ago period. Net interest income (NII) also increased 20% year-on-year to ₹154 crore from ₹128.6 crore.
Asset quality showed improvement, with gross non-performing assets (GNPA) declining to 2.36% from 3.10% in the previous quarter. Net NPAs were largely stable at 1.11%, compared with 1.12% in the preceding quarter.
The improvement in earnings was supported by steady business growth. In its third-quarter business update, Dhanlaxmi Bank said total business rose 20.76% year-on-year to ₹31,933 crore as of December 31, 2025.
Total deposits increased 18.39% to ₹17,839 crore, supported by a modest pick-up in low-cost balances. Current account savings account (CASA) deposits grew 9.04% to ₹5,018 crore during the quarter.
On the lending side, gross advances climbed 23.90% year-on-year to ₹14,094 crore, indicating stronger credit offtake. Growth was led by the gold loan portfolio, which surged 50.89% to ₹5,361 crore, reflecting continued demand in the secured retail segment.
The MSME loan book also expanded 27.72% to ₹2,064 crore from the year-ago period, underscoring the bank’s focus on increasing credit to small businesses.
Shares of Dhanlaxmi Bank Ltd were trading at ₹25.17 on the NSE as of 2.45 pm, up 1.00%, after touching an intraday high of ₹26.69.
