Dhanlaxmi Bank Q3 Net Profit Climbs 20% to ₹24 Crore on Higher Interest Income

Dhanlaxmi Bank Ltd. reported a steady improvement in its December-quarter performance, posting a 20.3% year-on-year rise in net profit to ₹23.9 crore for Q3 FY26, according to its regulatory filing. The private sector lender had reported a net profit of ₹19.85 crore in the same quarter last year. Net profit was marginally higher compared with ₹23.2 crore reported in the September quarter, according to the bank’s regulatory filing.

The improvement in profitability came alongside a sharp rise in income. According to the bank’s exchange filing, total income rose to ₹456 crore during the October–December quarter, compared with ₹377 crore in the year-ago period.

Income and Operating Profit Rise on Higher Interest Earnings

Interest income rose to ₹407.1 crore during the quarter, compared with ₹334.6 crore in the year-ago period, supported by growth in advances and investment income.

Operating profit increased by 54.8% on a year-on-year basis to ₹41.1 crore during the quarter, as per the regulatory filing. For the nine months ended 31 December 2025, the bank reported a total income of ₹1,281.5 crore, compared to ₹1,095.4 crore in the year-ago period.

Dhanlaxmi Bank continued to maintain a comfortable capital position. The bank's capital adequacy ratio was 17.19% under Basel III rules as of 31 December 2025.

Did Asset Quality Improve Further In The December Quarter?

Asset quality strengthened in the December quarter, with the gross non-performing asset ratio easing to 2.36% as of 31 December, 2025, compared with 3.53% a year earlier. Net non-performing assets improved to 1.11% in contrast to 0.86% of the same quarter in the previous financial year. The provision coverage ratio, including technical write-offs, stood at over 80%.

Following the announcement of the December-quarter results, shares of Dhanlaxmi Bank were trading lower during the session, declining by 1.36% on the BSE to trade near ₹24.59 per share. The stock movement came amid broader activity in banking stocks during the session.

Summing Up

Dhanlaxmi Bank’s Q3 looks decent, profit is up 20%, and GNPA has declined, which is a positive sign. The bank is earning more from interest and has strong capital, suggesting growth is possible. But the stock dipped after the results, indicating investors remain uncertain about whether the momentum will last.

What’s next? Watch if loan growth picks up without asset quality slipping, and whether the bank can keep profits rising consistently.

Sources:

BusinessStandard
Free Press Journal
FilingReader