Dhanalakshmi bank bags record profit

Tirupati, Oct 9 (UNI) The Kerala-based Dhanalakshmi bank bags a record net profit of Rs 9.51 crore during year 2005-06, as compared to a net loss of Rs 21.60 crore in the previous year, the bank's Executive Director V S R Murthy said here today.

The operating profit increased from Rs 18.45 crore to Rs 28.24 crore, during the year recording a growth of 53 per cent, he added.

Addressing a press conference at its bank premises here, he said the Board of Directors recommended a dividend of 7 per cent for the year. The total income of the bank increased from Rs 206.88 crore to Rs 236.94 crore during the year, recording a growth of 14.5 per cent The total deposits of the bank increased from Rs 2,339 crores as of March 2005, to Rs 2533 crore in the corresponding period this year. The cost of funds declined from 5.33 to 5.19 per cent, while yield on advances increased from 9.32 per cent to 9.44 per cent during the year.

Priority sector advanced as a per cent of total advances touched 43.84 per cent as on march 31, 2006 well above the RBI benchmark of 40 per cent, he added.

Mr Murthy said, concerted efforts were made in recovering Non Performing Assets (NPA).

The bank having 185 branches, including 24 extension counters, covering eight states in the country, Murthy said, 151 branches of the bank were brought under centralized banking solution offering anywhere banking services. Over 90 per cent of the bank's business stood covered under networked banking.

Andhra Pradesh, Karnataka and West Bengal comprised as Bangalore zone had achieved total deposits of Rs 189.29 crore and recorded net profit of Rs 8.33 crore in half year of current financial year.

He said the bank is planning to reach a business level of Rs 5,000 crore for the year 2006-07. The main focus areas would be small and medium enterprises, agriculture, micro credit, non interest income, increasing the number of relationships and networking 150 branches covering around 95 per cent of the bank's business, he added.

To expand its banking operations all over the country, Mr Murthy said Directors of the bank had already approved the proposals to start new branches including 13 more branches in Andhra Pradesh and same as submitted to the Reserve Bank of India for consideration.

Two new branches had already opened at Nizamabad and Khammam in the state, he added.

He said the bank had 65 ATMs presently, the number of ATMs would be increased to 100 by March 2007. The bank had also made an MoU with other 14 banks for joinnig in their ATM network, under 'cash tree'.

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