Dhanalakshmi Bank shows improved performance

Thrissur, May 26: Kerala-based Dhanalakshmi Bank recorded an overall improvement in the performance during the last fiscal to post a net profit of Rs 9.51 crore as compared to a net loss of Rs 21.60 crore for the previous year.

With the operating profit increasing from Rs 18.45 crore to Rs 28.24 crore during the year, recording a growth of 53 per cent, the Board of Directors has recommended a dividend of seven per cent.

Announcing the annual results, Bank Chairman A D Navaneethan said the total income increased from Rs 206.88 crore to Rs 236.94 crore during the year recording a growth of 14.5 per cent.

Following a special thrust on fee-based business, non-interest income increased from Rs 14.72 crore to Rs 27.05 crore during the year registering a growth of 83.8 per cent.

The total deposits of the bank increased from Rs 2,339 crore as on March 31, 2005 to Rs 2,533 crore as on March 31, 2006, while the total advances moved up from Rs 1,512 crore to Rs 1,690 crore during the same period.

Priority sector advances as a percentage to total advances touched 43.84 per cent, well above the RBI benchmark of 40 per cent while micro credit rose from Rs 28.95 crore to Rs 55.63 crore during the period with 92 per cent growth.

The NPA was brought down from 3.92 to 2.44 per cent, bank CEO P S Prasad said.

UNI