Dhanalakshmi Bank Oct-Dec net plunges 92% on operating costs

Dhanalakshmi Bank Oct-Dec net plunges 92% on operating costs

Mumbai: Private-sector lender Dhanalakshmi Bank Ltd said its Oct-Dec quarter net profit fell 92% despite a rise in total income, as profits were hurt by higher operating costs during the quarter.

The bank reported a net profit of Rs1.32 crore in Oct-Dec compared with Rs16.9 crore in the year-ago period, but total income rose to Rs156 crore from Rs124 crore earlier.

“It was mainly the operating expenses," which impacted the quarter said Abhishek Nalwaya, head of investor relations, adding the bank had incurred about Rs53 crore in operating expenses.

This compared with an operating expense of Rs29.2 crore in the year-ago period.

In Oct-Dec the bank incurred about Rs30.1 crore in employee costs as it added 650 employees in the quarter taking its total headcount to 2,800 employees, Nalwaya said.

“We also incurred some expenses on ATMs and new branches that we set up," Nalwaya said.

The bank added 45 branches and 101 ATMs during the quarter, he said. It plans to add another 21 branches in Jan-March to reach 273 branches across the country, he said.

Shares of Dhanalakshmi Bank were up 0.1% at Rs143.5 in a weak Mumbai market.