Dhanlaxmi Bank shares rise 5 pcs after earnings doubled

New Delhi, November 1 () Dhanlaxmi Bank shares rose more than 5 percent on Friday after the bank reported a nearly double net gain in the September quarter.

Shares of the private sector lender rose 4.96 percent to Rs 16.50 each in the BSE.

Similarly, in the NSE, the stock experienced a 5.09 percent increase to Rs 16.50.

Dhanlaxmi Bank reported on Thursday an almost double increase in its net earnings of Rs 22.07 rupees for the second quarter ending September 30, as the delinquency rate dropped.

The bank had published a net profit of Rs 12.15 million in the corresponding quarter from July to September of the previous fiscal year.

The lender made provisions for bad loans and contingencies of Rs 25.38 million for the quarter of September, while there was a deprovisioning of Rs 18.19 million the previous year.

The quality of the assets witnessed an improvement as gross non-productive assets (NPA) fell to 7.06 percent (Rs 476.08 million) from gross advances as of September 30, 2019 from 7, 81 percent (488.74 crore) a year ago.

The net NPAs were 1.65 percent (Rs 105.34 million rupees), below 2.92 percent (Rs 173.54 rupees). The provision coverage ratio as of September 30, 2019 is 89.16 percent, the bank said. RUJ ANS ANS