Dhanlaxmi Bank Marks Centenary Year Following Record Financial Turnaround

Dhanlaxmi Bank is set to launch its year-long centenary celebrations in Thrissur, marking 100 years of operations. The milestone follows a period of financial turnaround that includes nine consecutive quarters of net profit and expansion plans across southern India.

THRISSUR — Dhanlaxmi Bank is preparing to launch its year-long centenary celebrations, marking a century of operations since its inception. The inaugural event in Thrissur will be inaugurated by Keralam Chief Minister V.D. Satheesan, bringing together dignitaries, industrial and social sector representatives, customers, and current and former employees.

As part of its centenary initiatives, the bank announced plans to introduce a scholarship scheme aimed at financially underprivileged students who demonstrate academic excellence. The milestone comes as the institution reports a significant financial turnaround following a brief period of losses.

Addressing a press conference, Managing Director and CEO Ajith Kumar K.K. and Executive Director P. Suryaraj stated that the bank enters its centenary year on the back of record growth in business volume and profitability. After recording a loss of approximately ₹8 crore in the first quarter of FY25, the bank returned to profitability and has since maintained nine consecutive quarters of net profit.

In FY26, the bank posted a net profit of ₹102.75 crore, crossing the ₹100-crore mark for the first time in its history. This momentum continued into the current financial year, with net profit for the first half reaching ₹73.46 crore, more than double the ₹35.38 crore reported during the corresponding period of the previous year.

As of September 30, the bank's total business stood at ₹36,499 crore, comprising ₹20,551 crore in deposits and ₹15,948 crore in gross advances. Management projects total business to exceed ₹40,000 crore by the end of the current financial year and reach ₹50,000 crore in the next fiscal. Sustaining annual growth of over 20% is expected to help the bank achieve its long-term target of ₹1 lakh crore in total business within five years.

Regarding its credit portfolio, gold loans currently account for 40% of the bank's advances, followed by corporate loans at 20%, SME loans at 16%, and retail and agricultural lending at 24%. Under its portfolio diversification strategy, the bank intends to increase the share of SME lending to 30%.

In terms of physical expansion, Dhanlaxmi Bank currently operates 271 branches. It plans to open 25 new branches this year, primarily across Keralam, Tamil Nadu, and Telangana. The branch network is projected to reach 290 by the end of the current financial year and surpass 300 in the following fiscal year.

"Dhanlaxmi Bank's journey offers a clear lesson in financial resilience and strategic turnaround. Reaching a century of operations while achieving consecutive quarters of net profit and scaling past ₹36,000 crore in total business demonstrates the importance of disciplined management. Their targeted focus on portfolio diversification, particularly expanding SME lending alongside a growing branch network, provides a solid framework for regional banking institutions aiming for sustainable long-term growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes