Dhanlaxmi Bank shares more than 1 PC after earnings doubled

New Delhi, November 1 () Dhanlaxmi Bank shares lost some initial gains on Friday and ended the session by more than 1 percent, even when the lender reported an almost double increase in net earnings for the September quarter.

Shares of the private sector lender rose 1.15 percent to Rs 15.90 each in the BSE. The stock experienced an intraday increase of 4.96 percent to Rs 16.50

Similarly, in the National Stock Exchange (NSE), the scrip was established at Rs 15.90, an increase of 1.27 percent. The stock rose 5.09 percent to Rs 16.50 during the day.

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 recorded a net profit of Rs 12.15 million in the corresponding quarter from July to September of the previous 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 a year ago.

The quality of the assets witnessed an improvement as the gross non-productive assets (NPA) fell to 7.06 percent (Rs 476.08 million) of the gross advances as of September 30, from 7.81 percent (488.74 rupees) a year ago.

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