Shares of Dhanlaxmi Bank witnessed a robust rise of over 6% in the early trading session on Tuesday, following the release of the bank’s Q3FY24 business update. In a filing to the exchange on Monday, the private sector lender reported an 11.5% improvement in its overall business, reaching ₹24,657 crore for the quarter ending December.
The bank’s gross advances showed healthy growth, reaching ₹10,347 crore in Q3FY24, a remarkable increase of 11.93% compared to Q3FY23 gross advances. ₹9,244 crores. Additionally, the bank’s total deposits grew by 10.60% YoY to ₹14,310 crore in Q3FY24.
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The Current Account and Savings Account (CASA) stood at ₹4,459 crore, marking a 5.69% increase from ₹4,219 crores. The CD ratio for the quarter was reported at 72.31%, showing an improvement from 71.45% in the corresponding quarter of the previous year.
The bank said its gold loan business expanded by 28.36% in Q3FY24 to ₹2,675 crore, compared to ₹2,084 crore in the corresponding quarter last year.
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After the positive Q3 business update, the bank’s shares started today’s trading session positively at ₹31.80 per, compared to the previous closing price of ₹30.95. The stock further rallied to ₹32.90 apiece, reflecting a gain of 6.3%.
In 2023, the stock performed well, delivering a return of 55%, earning from ₹20 each ₹30.65. However, the stock is trading 85% below its all-time high ₹212 per, affected in 2010.
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Established in 1927, Dhanlaxmi Bank is actively engaged in providing a wide range of banking and financial services, encompassing retail banking, corporate banking, and treasury operations, with a significant presence in southern states.
As of September 30, 2023, the bank boasted of 255 branches, 275 ATMs and recycling machines, and 17 business correspondents, strategically spread across 14 states and 1 Union Territory.
In the first half of the financial year 2023-24 (H1FY24), the bank achieved its highest ever half-year net profit, overall. ₹51 crores. This impressive result was mainly driven by a great improvement in other income, which recorded a remarkable growth of 6163%, reaching ₹75.79 crore as compared to ₹1.21 crore in H1FY23.
At 10:15 AM, the stock was trading with a gain of 2.58% at ₹31.70 per
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 02 Jan 2024, 10:25 IST