Dhanlaxmi Bank’s net profit fell by 43.3% for first quarter ended June 2011 to Rs 3.4 crore from Rs 6 crore a year ago on erosion in interest margin due to rising fund costs.
Total income for the quarter under review rose by 86% to Rs 371 crore from Rs 199 crore in Q1 FY11. However, its net interest margins (NIM) dipped to 2.0% from 2.6% in the same period last year due to rise in cost of funds, private sector bank said in a statement.
The non-interest income rose 77% from Rs 31 crore to Rs 55 crore due to the thrust on fee based business.
Total business grew by 73% to Rs 22,579 crore from Rs 13,077 crore a year ago. The deposits increased by 67% in 12 months from Rs 7,747 crore to Rs 12,904 crore.
Its advances rose by 82% to Rs 9,675 crore, from Rs 5,329 crore in the same period.
The bank’s loan book rose sharply due to greater thrust on the retail segment and diversification across regions. Total asset book increased by 67% to Rs 15,036 crore from Rs 9,027 crore.
Private bank’s share was trading at 104.95, down 4.5% over previous close on the Bombay Stock Exchange.
