Shares of this public-sector Bank rose 4 percent in Wednesday’s trading session after providing key business updates for the quarter ended 31st December 2023. In the past six months, the bank’s stock has gained more than 50 percent.
With a market capitalization of Rs 33,494.90 crores, the stocks of Dhanlaxmi Bank Limited opened their trading hour on Wednesday at Rs 46 and currently trade at Rs 47.30, gaining around 4 percent compared to the previous closing levels of Rs 45.44 apiece. The bank’s stock is inching towards its 52-week high price recorded at Rs 51.90 apiece.
Such stock price movements were witnessed after the bank, through a regulatory filing with the Bombay Stock Exchange (BSE), provided key business updates for the December 2023 quarter.
Starting with the CASA deposits, the bank reported an increase of 12.70 percent YoY, taking a shift from Rs 1,09,430 crores during the quarter ended December 2022 to Rs 1,23,326 crores during the quarter ended December 2023. Moreover, the total deposits of the bank, during the same time horizon, rose by 17.90 percent from Rs 2,08,436 crores to Rs 2,45,738 crores.
In addition to the above, the gross advances of the bank rose by 20.28 percent, i.e., from Rs 1,56,962 crores during the quarter ended December 2022 to Rs 1,88,796 crores during the quarter ended December 2023. On an overall basis, the business of the bank rose by 18.92 percent, viz, from Rs 3,65,398 crores to Rs 4,34,534 crores.
During the recent financial quarters, the Bank’s total income level as well as net profits showed positive movements with the former shifting from Rs 5,417.87 crores during Q1FY23-24 to Rs 5,735.54 crores during Q2FY23-24, and, the latter, during the same period, increasing from Rs 882.49 crores to Rs 919.75 crores.
Coming onto the bank-specific ratios, the net non-performing assets (net NPAs) reduced from 0.97 percent during FY21-22 to 0.25 percent during FY22-23. The net interest margin (NIM) of the bank, during the same period, increased from 2.75 percent to 2.99 percent.
The basic profitability ratios of the bank such as the return on equity (RoE) as well as the return on capital employed (RoCE) rose with the former shifting from 9.75 percent during FY21-22 to 19.42 percent during FY22-23 and, the latter moving up from 12.89 percent to 18.26 percent.
Bank of Maharashtra is an India-based Banking Corporation providing various deposit schemes such as savings accounts, current accounts, term deposits, etc. The bank also provides credit facilities such as term loans, letters of credit, overdrafts, bank guarantees, and many others.
Written by Amit Madnani
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