Mumbai: Dhanlaxmi Bank’s Q3 FY26 performance showed continued recovery in core banking operations, with operating profit surging 54.8 percent year-on-year to Rupees 41.1 crore. Interest income rose to Rupees 407.1 crore from Rupees 334.6 crore in the year-ago quarter, driven by higher advances and investment income.
Total income improved both sequentially and annually, underscoring balance sheet expansion and improved yields. For the nine months ended December 2025, the bank posted a net profit of Rupees 59.3 crore, compared with Rupees 37.7 crore in the corresponding period last year.
Sequential growth builds despite higher provisions
On a quarter-on-quarter basis, operating profit jumped sharply by 46 percent, aided by controlled operating expenses and higher interest income. However, provisions rose to Rupees 17.3 crore in Q3 from Rupees 5.0 crore in Q2, reflecting prudent provisioning.
Net interest dynamics remained stable, with interest expended rising broadly in line with income growth. The bank’s operating margin improved to 9.02 percent from 6.74 percent in the preceding quarter.
Asset quality and key drivers
Asset quality strengthened during the quarter, with gross NPAs declining to 2.36 percent from 3.10 percent in Q2 and 3.53 percent a year ago. Net NPAs remained stable at 1.11 percent. Capital adequacy ratio stood at a healthy 17.19 percent under Basel III norms.
Earnings per share for the quarter improved to Rupees 0.61 compared with Rupees 0.59 in Q2. Retail banking continued to be the largest contributor to revenue, while treasury operations supported profitability.
Nine-month performance
For the nine-month period ended December 2025, total income increased to Rupees 1,281.5 crore from Rupees 1,095.4 crore a year earlier, while net profit rose 57.4 percent year-on-year. With stable margins, improving asset quality, and adequate capital buffers, the bank’s financial trajectory for FY26 remains firmly positive.
Disclaimer: This article is based on unaudited financial results submitted by the company and reviewed by statutory auditors. Figures are subject to revision upon completion of the final audit process.
