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.
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.
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.
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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