Dhanlaxmi Bank shares decline 5% after Q1 earnings

New Delhi: Shares of Dhanlaxmi Bank on Tuesday plunged 5 per cent after the company posted a 69 per cent decline in net profit for the first quarter ended June 2020. It tumbled 5.09 per cent to Rs 12.30 on the BSE.

On the NSE, it plunged 5.01 per cent to Rs 12.30.

The bank on Monday posted a 69 per cent decline in its net profit at Rs 6.09 crore for the first quarter ended June 2020 due to higher provisioning.

It had registered a net profit of Rs 19.84 crore during the same quarter of the previous fiscal.

On a sequential basis, however, its net profit in the quarter under review increased from Rs 2.6 crore in the March 2020 quarter.

Total income during April-June 2020 increased to Rs 278.62 crore from Rs 256.75 crore in the year-ago period, the lender said in a regulatory filing.

The bank's provisioning for bad loans and contingencies spiked to Rs 37.02 crore during the reported quarter of FY21 as against Rs 9.27 crore a year ago. However, it was lower from previous quarter's Rs 56.89 crore.

On the asset front, the bank's gross non-performing assets fell to 6.89 per cent of the gross advances as on June 30, 2020, from 7.61 per cent a year ago.

In absolute terms, gross NPAs were at Rs 464.45 crore as against Rs 496.48 crore.