Dhanlaxmi Bank posted, for Q1FY21, a 69% (YoY) drop in net profit at Rs.6 crore and like most banks, the sharp dip in bottomline was on account of higher provisioning.
The Bank’s provisioning for the quarter was at Rs.37 crroe v/s Rs.9 crore (YoY) but a sharp decline from Rs.57 crore (QoQ).
In terms of asset quality, Gross NPA rose from 5.9% to 6.89% and Net NPA too rose from 1.55% to 2.18% (QoQ).
While its treasury and retail banking did well, corporate/wholesale banking took a hit with a 16% (YoY) drop in revenue and loss rose from Rs.27 lakh to Rs.3 crore. Treasury was its saviour like in Q4, with profit from this segment jumping up 145%. Retail Banking profit dropped 63%.
The market has given these numbers a bug thumbs down and the stock price fell over 5% to Rs,12.30; it has recovered a but trades 4% down at Rs.12.45 levels. Its 52-week high stands at Rs.18.30 and low at Rs.7.42.