Mumbai, India — April 28, 2026
Private lender Dhanlaxmi Bank delivered a strong financial performance for the fourth quarter of fiscal year 2025–26, reporting a 50% year-on-year jump in net profit to ₹43.5 crore, compared with ₹29 crore in the same period last year.
The earnings growth was supported by robust income expansion and a notable improvement in asset quality, signaling strengthening fundamentals for the bank.
Strong Growth in Core Income
The bank’s net interest income (NII)—a key measure of core earnings—rose sharply by 39.4% to ₹187.1 crore, up from ₹134.2 crore a year earlier.
Total income also showed solid momentum, increasing to ₹512 crore, marking a 30% year-on-year growth from ₹394 crore in the corresponding quarter last year.
Meanwhile, earnings per share (EPS) improved to ₹1.10, compared with ₹0.85 in the year-ago period.
Asset Quality Sees Significant Improvement
Dhanlaxmi Bank reported a marked improvement in its asset quality metrics:
- Gross NPA declined to 1.89%, down from 2.98% a year earlier
- Net NPA dropped to 0.51%, compared with 1.11% in the previous quarter
The bank’s Capital Adequacy Ratio (CRAR) strengthened to 18.92%, reflecting a solid capital position to support future growth.
Full-Year Performance Remains Strong
For the full fiscal year 2025–26, Dhanlaxmi Bank reported a 54% increase in net profit to ₹102.8 crore, compared with ₹66.6 crore in FY25, underscoring consistent improvement across key financial metrics.
Market Reaction: Shares Surge
Following the upbeat earnings and improved asset quality, shares of Dhanlaxmi Bank witnessed strong buying interest. The stock surged over 14% on the National Stock Exchange (NSE), closing near ₹32, reflecting positive investor sentiment.
Outlook
The bank’s latest results highlight a turnaround story driven by improving asset quality, rising income, and stronger profitability. Going forward, investors will track whether the bank can sustain this growth momentum while maintaining credit discipline.
