Shares of this private-sector Bank rose approximately 3 percent in Tuesday’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 75 percent.
With a market capitalization of Rs 805.08 crores, the stocks of Dhanlaxmi Bank Limited opened their trading hour on Tuesday at Rs 31.96 and currently trade at Rs 31.82, gaining around 3 percent compared to the previous closing levels of Rs 30.94 apiece. The bank’s stock is inching towards its 52-week high price recorded at Rs 34.08 apiece.
Such bullish stock price behavior was witnessed after the bank, through a regulatory filing with the Bombay Stock Exchange (BSE), announced key business updates for the quarter ended December 2023.
Starting off with the gross advances, the bank reported an increase of 11.93 percent YoY, taking a shift from Rs 9,244 crores during the quarter ended December 2022 to Rs 10,347 crores during the quarter ended December 2023. Moreover, the total deposits of the bank, during the same time horizon, rose by 10.60 percent from Rs 12,939 crores to Rs 14,310 crores.
In addition to the above, the gold loan book of the bank rose by 28.36 percent, i.e., from Rs 2,084 crores during the quarter ended December 2022 to Rs 2,675 crores during the quarter ended December 2023. On an overall basis, the business of the bank rose by 11.15 percent, viz, from Rs 22,183 crores to Rs 24,657 crores.
During the recent financial quarters, the Bank’s total income level as well as net profits showed negative movements with the former shifting down from Rs 341.4 crores during Q1FY23-24 to Rs 327.43 crores during Q2FY23-24, and, the latter, during the same period, reduced from Rs 28.3 crores to Rs 23.16 crores.
Coming onto the bank-specific ratios, the net non-performing assets (net NPAs) reduced from 2.85 percent during FY21-22 to 1.16 percent during FY22-23. The net interest margin (NIM) of the bank, during the same period, increased from 2.80 percent to 3.35 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 4.83 percent during FY21-22 to 6.32 percent during FY22-23 and, the latter moving up from 5.37 percent to 6.13 percent.
Incorporated in 1927, Dhanlaxmi Bank Limited is a financial institution based in India that operates through four segments, i.e., treasury, corporate & wholesale banking, retail banking, and others. The “retail banking” segment generates the highest revenue for the bank.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
