Thrissur, India — : Dhanlaxmi Bank, one of India’s oldest private-sector lenders, reported a strong financial performance for the fourth quarter of fiscal year 2026, posting a 50% year-over-year increase in net profit driven by robust income growth and improved asset quality.
Strong Quarterly Performance
The bank reported a net profit of ₹43.5 crore ($5.2 million) for Q4 FY26, up from ₹29 crore a year earlier. Growth was supported by higher interest income and improved operating efficiency.
- Total Income: ₹512 crore (up 30% YoY)
- Interest Earned: ₹443 crore (up 26% YoY)
- Operating Profit (before provisions): ₹114 crore (up 194% YoY)
- Profit Before Tax: ₹79 crore (up 190% YoY)
- Earnings Per Share: ₹1.10 (vs ₹0.85 last year)
Full-Year FY26 Highlights
For the full fiscal year ended March 31, 2026, the bank maintained strong momentum:
- Net Profit: ₹102.8 crore (up 54% YoY)
- Total Income: ₹1,794 crore (up 20% YoY)
- Profit Before Tax: ₹138.2 crore (up 93% YoY)
- EPS: ₹2.60 (vs ₹2.37 in FY25)
Asset Quality Sees Significant Improvement
The bank made notable progress in reducing bad loans:
- Gross NPA Ratio: Improved to 1.89% from 2.98%
- Net NPA Ratio: Declined to 0.51% from 0.99%
- Provision Coverage Ratio: Strong at 92.46%
This improvement reflects better credit management and recovery efforts.
Capital Strength and Key Ratios
Dhanlaxmi Bank remains well-capitalized:
- Capital Adequacy Ratio (Basel III): 18.92% (up from 16.12%)
- Return on Assets: 0.84% (Q4 annualized)
- Net Worth: ₹1,264.55 crore
- Operating Margin: 22.19%
- Net Profit Margin: 8.49%
Balance Sheet Expansion
The bank’s balance sheet continued to expand steadily:
- Total Assets: ₹21,238 crore
- Deposits: ₹18,643 crore (up 16% YoY)
- Advances: ₹14,918 crore (up 25% YoY)
- Investments: ₹4,257 crore
Business Segment Performance
Retail banking remained the top contributor to profitability:
- Retail Banking: ₹37 crore (PBT)
- Treasury: ₹22 crore
- Corporate/Wholesale Banking: ₹11 crore
- Other Banking Operations: ₹9 crore
Other Key Developments
- The bank transferred ₹44.25 crore of stressed loans to asset reconstruction companies during the year.
- Exposure under COVID-19 restructuring stood at ₹153.2 crore across segments.
- The impact of newly notified labor codes by the Government of India was assessed as not material for FY26.
Audit and Governance
The financial results were approved by the Board of Directors in a meeting held on April 28, 2026. The bank’s joint statutory auditors issued a clean (unmodified) audit opinion, reinforcing confidence in its financial reporting.
Outlook
With improving asset quality, strong capital buffers, and steady growth in deposits and lending, Dhanlaxmi Bank appears well-positioned to sustain its growth trajectory in the coming fiscal year.
