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Business News/ Markets / Stock Markets/  Dhanlaxmi Bank shares surge over 6% on Q3 business update
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Dhanlaxmi Bank shares surge over 6% on Q3 business update

The bank's gross advances showed healthy growth, reaching ₹10,347 crore in Q3FY24, a notable increase of 11.93% compared to Q3FY23 gross advances of ₹9,244 crore. Additionally, the total deposits of the bank grew by 10.60% YoY to ₹14,310 crore in Q3FY24.

In the first half of the financial year 2023-24 (H1FY24), the bank achieved its highest-ever half-yearly net profit, totaling ₹51 crore. (Mint)Premium
In the first half of the financial year 2023-24 (H1FY24), the bank achieved its highest-ever half-yearly net profit, totaling 51 crore. (Mint)

Shares of Dhanlaxmi Bank witnessed a robust surge 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 total 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 notable increase of 11.93% compared to Q3FY23 gross advances of 9,244 crore. Additionally, the total deposits of the bank 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 crore. The CD ratio for the quarter was reported at 72.31%, showcasing 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 of last year.

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Following the positive Q3 business update, the bank's shares commenced today's trading session positively at 31.80 apiece, compared to the previous closing price of 30.95. The shares further rallied to 32.90 apiece, reflecting a gain of 6.3%.

In 2023, the shares performed well, delivering a return of 55%, gaining from 20 apiece to 30.65. Nevertheless, the shares are trading 85% below their all-time high of 212 apiece, touched in 2010.

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Established in 1927, Dhanlaxmi Bank is actively involved in providing a comprehensive 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 255 branches, 275 ATMs and recyclers, 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-yearly net profit, totaling 51 crore. This impressive result was primarily driven by a substantial improvement in other income, which recorded a remarkable increase of 6163%, reaching 75.79 crore compared to 1.21 crore in H1FY23.

At 10:15 AM, the stock was trading with a gain of 2.58% at 31.70 apiece. 

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 02 Jan 2024, 10:25 AM IST
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