Dhanlakshmi Bank plunges into red

Dhanlaksmi Bank is down in the red – financially and on the bourses. Opening Rs. 2 lower, the stock hit an intra day low-point a Rs.33.35 and is now 6% down at Rs.35. 52-week low is at Rs.29.15. After being in the limelight a few weeks ago on rumours of Kotak Mahindra Bank taking over the Bank, when it also hit the 20% upper circuit, this poor show comes as a total let down.

There is major disappointment on the counter on account of its very poor Q4FY15 performance. Higher provisioning for bad loans pushed the bank into the red – it posted a net log loss of Rs.267 crore for Q4FY15 and loss for FY15 stood at Rs.241 crore.  The bank provisioned Rs 250 crore for Q4 alone v/s Rs.267 crore it had entire FY15.

NII for the quarter was flat at Rs.77 crore. Asset quality was a bit better – Gross NPA was at 7% v/s 7.37% (QoQ) and Net NPA wa sat 3.29% v/s 4.52% (QoQ).