Dhanlaxmi Bank’s stock continues its remarkable ascent, gaining 5% in intraday trade and reaching ₹53.75 apiece, the highest level since August 2014. Over the last 10 trading sessions, the stock has shown an impressive return of 69%. Explore the reasons behind this surge and the key highlights from the bank’s Q3FY24 business update.
Stock Performance:
- Intraday Surge: Dhanlaxmi Bank’s stock surged 5% in intraday trade, hitting ₹53.75 apiece, marking its highest level since August 2014.
- 10-Day Ascent: Over the past 10 trading sessions, the stock has witnessed a remarkable ascent, rising from ₹30.30 apiece to ₹51.20, reflecting a stellar return of 69%.
- Month-to-Date Jump: In the current month, the stock has recorded a significant jump of 75.37%.
Key Highlights from Q3FY24 Business Update:
- Total Business Improvement: The Q3FY24 business update revealed an 11.5% YoY improvement in Dhanlaxmi Bank’s total business, reaching ₹24,657 crore.
- Gross Advances Growth: The bank’s gross advances showed healthy growth, reaching ₹10,347 crore in Q3FY24, a notable increase of 11.93% compared to Q3FY23.
- Deposit Growth: Total deposits of the bank grew by 10.60% YoY to ₹14,310 crore in Q3FY24.
- CASA Increase: The Current Account and Savings Account (CASA) stood at ₹4,459 crore, marking a 5.69% increase from ₹4,219 crore in Q3FY23.
- CD Ratio Improvement: The CD ratio for the quarter improved to 72.31%, up from 71.45% in the corresponding quarter of the previous year.
- Gold Loan Business Expansion: The bank’s gold loan business expanded by 28.36% to ₹2,675 crore in Q3FY24.
Financial Performance:
- Half-Yearly Net Profit: In H1FY24, Dhanlaxmi Bank achieved its highest-ever half-yearly net profit, reaching ₹51 crore, primarily driven by a substantial improvement in other income.
- Other Income Surge: Other income recorded a remarkable increase of 6163%, reaching ₹75.79 crore compared to ₹1.21 crore in H1FY23.
About Dhanlaxmi Bank:
Established in 1927, Dhanlaxmi Bank provides a comprehensive range of banking and financial services, including retail banking, corporate banking, and treasury operations. With a significant presence in southern states, the bank operates through 255 branches, 275 ATMs and recyclers, and 17 business correspondents spread across 14 states and 1 Union Territory as of September 30, 2023.
Conclusion:
Dhanlaxmi Bank’s stock surge and robust Q3FY24 performance highlight the positive momentum and growth trajectory of the bank. Investors are advised to stay informed about the bank’s strategic initiatives and financial developments.