Company Overview

Dhanlaxmi Bank Limited reported strong financial performance for FY 2025-26 with significant improvements across key metrics. The Bank achieved a net profit of ₹102.75 crore (up from ₹66.64 crore previous year) and operating profit of ₹216.28 crore. Total business grew 19.67% to ₹33,771.57 crore, comprising deposits of ₹18,642.88 crore (16.42% growth) and gross advances of ₹15,128.69 crore (23.95% growth).

Asset Quality and Capital Position

Asset quality showed marked improvement with Gross NPA reducing to 1.89% from 2.98% YoY and Net NPA improving to 0.51% from 0.99%. Provision coverage ratio stood at 92.46% including technical write-offs. The Bank maintained strong capital adequacy with CRAR at 18.92% (well above regulatory minimum of 11.50%), CET1 ratio at 16.11%, and total capital of ₹1,573.23 crore. Liquidity ratios remained robust with LCR at 119.88% and NSFR at 148.10%, both exceeding regulatory requirements.

AGM and Corporate Governance

The Bank issued notice for its 99th Annual General Meeting scheduled for September 23, 2026. Key agenda items include approval of audited FY26 financial statements, appointment of joint statutory auditors (M/s. Abraham & Jose and M/s G Natesan & Co. for ₹55 lakh fee), and appointment of two new independent directors (Sri. Rajan T.K and Sri. T.V Rao). Shareholders will also consider approval of new Employee Stock Option Plan (ESOP 2025) for up to 27,628,919 equity shares.

Capital Activities and Regulatory Compliance

The Bank raised ₹150 crore through Tier II bonds issuance during FY26 and maintained a strong capital structure. The rights issue from previous year (₹297.54 crore) contributed to the enhanced capital base. The disclosures were made in compliance with SEBI Listing Regulations, Companies Act, 2013, Banking Regulation Act, 1949, and RBI guidelines including Basel III Pillar III requirements. The Bank opted for taxation under Section 115BAA of Income Tax Act, 1961.

Operational Metrics

The Bank operated 264 branches across 14 States and 2 Union Territories with 285 ATMs/CRMs as of March 31, 2026. Employee strength stood at 1,856 with defined benefit plans including pension fund expense of ₹25.64 crore and gratuity of ₹18.55 crore. The investment portfolio totaled ₹4,257.44 crore primarily in government securities, with no derivatives or securitization activities during the year.