Dhanlaxmi Bank Reports Net Profit of ₹48.55 Crore in Q2 FY27

Thrissur-headquartered Dhanlaxmi Bank announced its financial results for the second quarter of FY27, reporting a net profit of ₹48.55 crore and a 21% year-on-year growth in total business. The bank also registered improvements in asset quality and growth across retail and gold loan portfolios.

Thrissur-based Dhanlaxmi Bank has announced its financial results for the second quarter of FY27, registering a net profit of ₹48.55 crore. This marks an increase compared to the ₹23.20 crore reported in the corresponding period of the previous financial year.

The bank's operating profit for the quarter stood at ₹69.82 crore, up from ₹28.19 crore recorded in the same period of the previous fiscal year.

Total business for the institution reached ₹36,499 crore as of September 30, marking a 21% growth from ₹30,146 crore recorded on September 30, 2025. Total deposits grew by 20% to touch ₹20,551 crore, compared to ₹17,105 crore previously. Within the deposit segment, CASA deposits stood at ₹5,769 crore, rising from ₹4,938 crore, while retail term deposits increased by 20.73% to hit ₹10,680 crore from ₹8,846 crore.

On the lending side, gross advances improved by 22.29% to ₹15,948 crore, up from ₹13,041 crore in the corresponding period last year. The retail advance portfolio, which includes gold loans, grew by 34.63%. Specifically, the gold loan portfolio recorded a year-on-year growth of 53.43%, reaching ₹6,823 crore.

Dhanlaxmi Bank also reported improvements in its asset quality on a year-on-year basis. Gross Non-Performing Assets (NPA) decreased by 134 basis points to 1.76%, while net NPA declined by 67 basis points to 0.45%. The bank's Provision Coverage Ratio stood at 92.86% as of September 30.

Commenting on the performance, Ajith Kumar K K, Managing Director and CEO of Dhanlaxmi Bank, stated that the financial results for the second quarter reflect robust growth across key financial and business parameters. He added that the performance demonstrates the strength of the bank's business strategy and its continued focus on sustainable growth as it approaches its centenary.

"Dhanlaxmi Bank's Q2 FY27 performance highlights the effectiveness of targeted retail expansion, particularly within the gold loan segment, which saw substantial growth. The simultaneous improvement in asset quality—with reductions in both gross and net NPAs alongside a high provision coverage ratio—indicates sound risk management practices. For financial institutions and growing businesses alike, balancing top-line portfolio expansion with disciplined asset quality remains a critical driver for sustainable profitability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes