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Dhanlaxmi Bank on Wednesday reported a multi-fold rise in net profit at Rs 15.89 crore for September quarter 2022-23 on lower provisions for bad loans.
The bank had clocked a net profit of Rs 3.66 crore in the year-ago period. In the previous June quarter, the bank incurred a net loss of Rs 26.43 crore.
Total income increased to Rs 285.26 crore in September quarter from Rs 266.79 crore earlier, Dhanlaxmi Bank said in a regulatory filing.
Interest income rose to Rs 262.50 crore from Rs 229.01 crore. Operating profit was up 35 per cent at Rs 35.35 crore.
Gross non-performing assets (NPAs) of the bank were 6.04 per cent of gross advances at the end of September 2022 as against 8.67 per cent by the year-ago period.
Net NPAs or bad loans were trimmed to 2.32 per cent from 4.92 per cent.
Thus, provisions for bad loans and contingencies fell to Rs 19.46 crore for the quarter, as against Rs 22.60 crore set aside for the year-ago period.
Dhanlaxmi Bank said it has recovered Rs 3.32 crore from one account during this financial year after fraud classification.
In a separate filing, the bank said its Extraordinary General Meeting (EGM) scheduled for November 12, 2022, is being cancelled.
Requisitionists holding more than 10 per cent of equity shares of the bank have agreed to withdraw the special notice dated September 26, 2022, it added.
Bank’s NRI businessman shareholder B Ravindran Pillai along with other members through a requisition had called for an EGM to suspend capital and revenue expenditure related powers of the MD & CEO of Dhanlaxmi Bank.
In the requisition dated September 26, 2022, the shareholders led by Pillai said in the EGM in June, they had expressed serious concern over the poor performance of the bank and heavy expenditure.
They said the MD had assured them that immediate steps would be taken to rectify the anomalies. However, in spite of the verbal assurance of the MD, it was alarming to note that the bank registered heavy loss in Q1FY23.
“The MD continues with his luxury of incurring expenditure like engaging high-cost advocates for avoidable litigations thrust upon the bank, claiming huge incentives for himself recruiting new personnel, opening of new branches etc without objective analysis of the workload of the executives,” they said in the requisition.
Presently, Shivan J K is Managing Director and Chief Executive Officer of the Thrissur-based private sector lender.
In September 2020, RBI had appointed its General Manager D K Kashyap on the board of the bank for two years.
The bank was put under the Prompt Corrective Action (PCA) Framework by the RBI in November 2015 due to deteriorating financial health and it came out of these restrictions only in 2019.
Bank unions AIBOC and AIBEA had flagged concerns over few developments at Dhanlaxmi Bank and sought immediate corrective measures by the RBI.
Besides, the All India Bank Employees’ Association (AIBEA) had urged the RBI governor to intervene into the affairs of Dhanlaxmi Bank which it alleged is headed in the wrong direction.
Dhanlaxmi Bank stock settled at Rs 15.22 on BSE, down 0.46 per cent from the previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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