Dhanalakshmi Bank posts over 37% topline growth for the half year ended September 30, 2009

October 24, 2009: Dhanalakshmi Bank has posted an impressive 37.8% growth in total income -- at Rs. 286.72 crores -- for the half year ended September 30, 2009, against Rs. 208.05 crores for the same period in the previous year. Fee based income registered an encouraging 61.4% increase to Rs. 42.44 crores for the period under review, against Rs. 26.3 crores in the corresponding period of the previous year.

Dhanalakshmi Bank’s net profit for the half year ended September 30, 2009 stood at Rs. 16.38 crores against Rs. 18.30 crores in the same period last year, registering a marginal dip of 10.49%. The slight drop in net profit is due to the Bank’s on-going investments in people and infrastructure -- operating expenses have jumped by 43.77% (Rs. 75.80 crores against Rs. 52.72 crores in the previous year).

Total deposits of the Bank increased from Rs. 3,936.23 crores as at September 30, 2008 to Rs. 5,629.41 crores as on September 30, 2009 registering a growth of 43.02%. Total advances increased much faster during the same period from Rs. 2,549.36 crores to Rs. 4,053.07 crores at 58.98% even amidst recessionary conditions. The Bank’s business growth rates during Sept 08 - Sept 09 were well ahead of the rates of the banking industry.

The Bank continued its emphasis on inclusive growth which was reflected in the sharp increase in micro finance outstanding from Rs. 110.94 crores as at the end of September 2008 to Rs. 191.57 crores as at the end of September 2009 at a rate of 72.7%.

Gross NPA percentage declined from 2.54% to 1.73% during the year attributable to sustained recovery measures while net NPA marginally slid from 0.91% to 0.86% during the same period. Capital Adequacy Ratio was comfortable at 15.90% (Basel II) and 14.93% (Basel I).

The results reflect the Bank’s renewed growth impetus, as well as the investments being undertaken to build the foundation for a sustainable, future growth. As part of its developmental plans, the Bank opened 27 new branches recently on a single day (October 14, 2009) thereby expanding its footprint from 8 to 12 States of the country.

The number of employees of the Bank rose from 1,368 as at September 30, 2008 to 2162 as at September 30, 2009 in tune with the Bank’s growth and diversification plans. The Bank has put in place a revised business model that focuses on increasing centralization of back office functions, deploying experienced professionals to manage the growing number of verticals that provide focus to growth and undertaking new projects in technology aimed at enhancing operational efficiency at various levels.

During the period the Bank also successfully placed a Tier-II bond issue of Rs. 150 crores.

(This is a press release from Dhanalakshmi Bank)