1. Auditor’s Note
- The auditors, M/s Sagar & Associates and M/s Abraham & Jose, have issued an unmodified (clean) opinion on the audited financial results for the quarter and year ended March 31, 2026.
- There are no qualifications, concerns, or issues raised in the auditor’s report.
- The only exception is that Pillar 3 disclosures (Leverage Ratio, Liquidity Coverage Ratio, Net Stable Funding Ratio under Basel III) have been disclosed on the Bank’s website and have not been audited.
- The audit covers the Head Office, Treasury, and top 20 branches audited by the joint auditors; remaining 246 branches audited by respective branch auditors.
- The auditors confirm that the financial results give a true and fair view in accordance with applicable accounting standards, RBI guidelines, and regulatory requirements.
- No material uncertainty about the Bank’s ability to continue as a going concern was noted.
Conclusion: Auditor’s note is standard with no qualifications or adverse remarks.
2. Financial Performance
Standalone Financial Results (Rs. in Lakhs)
| Particulars | Q4 FY26 (31.03.2026) Audited | Q3 FY26 (31.12.2025) Unaudited | Q4 FY25 (31.03.2025) Audited | FY26 (31.03.2026) Audited | FY25 (31.03.2025) Audited |
|---|
| 1. Interest Earned (a)+(b)+(c)+(d) | 44,305 | 40,706 | 35,062 | 1,60,148 | 1,31,988 |
| (a) Interest/discount on advances/bills | 36,537 | 33,204 | 28,399 | 1,30,535 | 1,06,290 |
| (b) Income on investments | 6,811 | 7,172 | 6,025 | 27,616 | 22,625 |
| (c) Interest on balances with RBI and other interbank funds | 290 | 190 | 472 | 857 | 1,462 |
| (d) Others | 667 | 140 | 166 | 1,140 | 1,611 |
| 2. Other Income | 6,929 | 4,925 | 4,309 | 19,239 | 16,920 |
| 3. Total Income (1 + 2) | 51,234 | 45,631 | 39,371 | 1,79,387 | 1,48,908 |
| 4. Interest Expended | 25,600 | 25,284 | 21,639 | 97,915 | 83,659 |
| 5. Operating Expenses (a) + (b) | 14,267 | 16,233 | 13,864 | 59,844 | 55,739 |
| (a) Employees Cost | 7,104 | 8,722 | 7,105 | 32,697 | 31,364 |
| (b) Other Operating Expenses | 7,163 | 7,511 | 6,759 | 27,147 | 24,375 |
| 6. Total Expenditure (4 + 5) (excluding provisions and contingencies) | 39,867 | 41,517 | 35,503 | 1,57,759 | 1,39,398 |
| 7. Operating Profit before provisions and contingencies (3 - 6) | 11,367 | 4,114 | 3,868 | 21,628 | 9,510 |
| 8. Provisions (other than tax) and contingencies | 3,471 | 1,726 | 1,150 | 7,806 | 2,348 |
| 9. Exceptional Items | - | - | - | - | - |
| 10. Profit from Ordinary Activities before tax (7 - 8 - 9) | 7,896 | 2,388 | 2,718 | 13,822 | 7,162 |
| 11. Tax Expense | 3,547 | - | (180) | 3,547 | 498 |
| 12. Net Profit from Ordinary Activities after tax | 4,349 | 2,388 | 2,898 | 10,275 | 6,664 |
| 13. Extraordinary Items (net of tax expense) | - | - | - | - | - |
| 14. Net Profit for the period (12 - 13) | 4,349 | 2,388 | 2,898 | 10,275 | 6,664 |
| 15. Paid-up Equity Share Capital (Face value Rs.10) | 39,470 | 39,470 | 39,470 | 39,470 | 39,470 |
| 16. Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) | - | - | - | 91,443 | 84,195 |
| 17. Analytical Ratios | | | | | |
| (i) Percentage of Shareholding of Government of India | Nil | Nil | Nil | Nil | Nil |
| (ii) Capital Adequacy Ratio as per Basel III | 18.92% | 17.19% | 16.12% | 18.92% | 16.12% |
| (iii) Earnings Per Share (EPS) in Rupees | | | | | |
| - Basic EPS (Before and after Extraordinary items) | 1.10 | 0.61 | 0.85 | 2.60 | 2.37 |
| - Diluted EPS (Before and after Extraordinary items) | 1.10 | 0.61 | 0.85 | 2.60 | 2.37 |
| (iv) NPA Ratios | | | | | |
| a) Gross NPA | 28,638 | 33,240 | 36,411 | 28,638 | 36,411 |
| b) Net NPA | 7,540 | 15,413 | 11,794 | 7,540 | 11,794 |
| c) % of Gross NPAs to Gross Advances | 1.89% | 2.36% | 2.98% | 1.89% | 2.98% |
| d) % of Net NPAs to Net Advances | 0.51% | 1.11% | 0.99% | 0.51% | 0.99% |
| (v) Return on Assets (average) – (Annualized)* | 0.84% | 0.47% | 0.67% | 0.53% | 0.40% |
| (vi) Net Worth | 1,26,455 | 1,21,780 | 1,17,950 | 1,26,455 | 1,17,950 |
| (vii) Debt Equity Ratio (in times)** | 0.12 | 0.12 | Nil | 0.12 | Nil |
| (viii) Total Debts to Total Assets*** | 3.47% | 2.48% | 1.12% | 3.47% | 1.12% |
| (ix) Operating Margin | 22.19% | 9.02% | 9.82% | 12.06% | 6.39% |
| (x) Net Profit Margin | 8.49% | 5.23% | 7.36% | 5.73% | 4.48% |
*Not annualized
**Debt represents borrowings with residual maturity of more than one year.
***Total debts represent total borrowings of the bank.
Statement of Assets and Liabilities (Rs. in Lakhs)
| Particulars | As on 31.03.2026 Audited | As on 31.03.2025 Audited |
|---|
| Capital and Liabilities | | |
| Capital | 39,470 | 39,470 |
| Reserve and Surplus | 1,07,922 | 1,00,059 |
| Deposits | 18,64,288 | 16,01,345 |
| Borrowings | 73,663 | 20,000 |
| Other Liabilities and Provisions | 38,423 | 32,820 |
| Total | 21,22,376 | 17,93,694 |
| Assets | | |
| Cash and Balances with RBI | 94,796 | 99,240 |
| Balances with Banks and Money at Call | 12,384 | 8,743 |
| Investments | 4,25,744 | 3,95,515 |
| Advances | 14,91,806 | 11,95,949 |
| Fixed Assets | 29,004 | 28,156 |
| Other Assets | 70,031 | 66,091 |
| Total | 21,23,765 | 17,93,694 |
Cash Flow Statement (Rs. in Lakhs)
| Particulars | Year Ended 31.03.2026 | Year Ended 31.03.2025 |
|---|
| Net profit before taxes | 13,822 | 7,162 |
| Depreciation on fixed assets | 2,997 | 2,533 |
| Depreciation on investments | 241 | - |
| Amortization of premium/discount on investments | 372 | (76) |
| Loan loss provisions including write off | 7,010 | 1,797 |
| Provision against standard assets | 1,000 | 832 |
| Provision for NPA (Investments) | - | 133 |
| Provision for restructured assets | (242) | (374) |
| Provision for fraud | - | 5 |
| (Profit)/Loss on sale of fixed assets | (13) | (24) |
| Other provisions | (4) | (38) |
| Provision for unhedged Forex Exposure | 41 | (7) |
| (Increase)/Decrease in Investments (excluding Held to Maturity) | 41,866 | (673) |
| (Increase)/Decrease in Advances | (3,02,626) | (1,87,156) |
| Increase/(Decrease) in Borrowings | 38,663 | 5,097 |
| Increase/(Decrease) in Deposits | 2,62,943 | 1,72,314 |
| Increase/(Decrease) in Other assets | (7,265) | (691) |
| Increase/(Decrease) in Other liabilities and provisions | 4,566 | (2,251) |
3. Detailed Notes and Management Commentary
- Pillar 3 disclosures (Leverage Ratio, Liquidity Coverage Ratio, NSFR) are disclosed on the Bank’s website but not audited.
- Provision Coverage Ratio (including technical write-offs) as on March 31, 2026 is 92.46%.
- NPA position improved: Gross NPA reduced to Rs. 286.38 Cr (1.89% of advances) from Rs. 364.11 Cr (2.98%) in previous year.
- Net NPA reduced to Rs. 75.40 Cr (0.51%) from Rs. 117.94 Cr (0.99%).
- Capital Adequacy Ratio improved to 18.92% from 16.12% as per Basel III.
- Loans transferred under RBI Master Direction: Rs. 44.25 Cr principal outstanding transferred to Asset Reconstruction Companies; consideration received Rs. 3.5 Cr.
- Resolution plans under COVID-19 related stress: Details provided on exposures, slippages, and repayments for personal and corporate loans.
- Projects under implementation: 78 accounts with outstanding Rs. 234.44 Cr as on March 31, 2026; 6 accounts with resolution plans implemented.
- Other income includes fees from Priority Sector Lending Certificates sale: Rs. 3.58 Cr (quarter), Rs. 5.58 Cr (year).
- Labour Codes impact: No material impact on employee benefit obligations; actuarial assessment done.
- Figures for Q4 FY26 and Q4 FY25 are balancing figures between audited full year and unaudited YTD figures.
- Previous period figures regrouped/rearranged for comparability.
4. Segment Information
Business Segments (Rs. in Lakhs)
| Particulars | Q4 FY26 Audited | Q3 FY26 Unaudited | Q4 FY25 Audited | FY26 Audited | FY25 Audited |
|---|
| 1. Segment Revenue | | | | | |
| (a) Treasury | 6,904 | 7,477 | 6,822 | 29,432 | 25,673 |
| (b) Retail Banking | 34,077 | 27,958 | 20,422 | 1,10,093 | 86,171 |
| (c) Corporate/Wholesale Banking | 9,318 | 9,698 | 11,180 | 37,817 | 35,537 |
| (d) Other Banking Operations | 935 | 499 | 946 | 2,045 | 1,527 |
| (e) Unallocated | - | - | - | - | - |
| Total Revenue | 51,234 | 45,632 | 39,370 | 1,79,387 | 1,48,908 |
| Particulars | Q4 FY26 Audited | Q3 FY26 Unaudited | Q4 FY25 Audited | FY26 Audited | FY25 Audited |
|---|
| 2. Segment Results (Net of Provisions) | | | | | |
| (a) Treasury | 2,170 | 1,800 | 593 | 6,221 | 4,832 |
| (b) Retail Banking | 3,694 | 934 | 1,488 | 6,431 | 3,429 |
| (c) Corporate/Wholesale Banking | 1,097 | (845) | (309) | (875) | (2,626) |
| (d) Other Banking Operations | 935 | 499 | 946 | 2,045 | 1,527 |
| (e) Unallocated | - | - | - | - | - |
| Total Profit before tax | 7,896 | 2,388 | 2,718 | 13,822 | 7,162 |
| Particulars | Q4 FY26 Audited | Q3 FY26 Unaudited | Q4 FY25 Audited | FY26 Audited | FY25 Audited |
|---|
| 3. Segment Assets | | | | | |
| (a) Treasury | 4,69,822 | 4,65,893 | 4,27,862 | 4,69,822 | 4,27,862 |
| (b) Retail Banking | 11,99,020 | 10,87,616 | 9,25,329 | 11,99,020 | 9,25,329 |
| (c) Corporate/Wholesale Banking | 4,47,533 | 4,53,834 | 4,29,647 | 4,47,533 | 4,29,647 |
| (d) Other Banking Operations | - | - | - | - | - |
| (e) Unallocated | 7,390 | 11,979 | 10,856 | 7,390 | 10,856 |
| Total Assets | 21,23,765 | 20,19,322 | 17,93,694 | 21,23,765 | 17,93,694 |
| Particulars | Q4 FY26 Audited | Q3 FY26 Unaudited | Q4 FY25 Audited | FY26 Audited | FY25 Audited |
|---|
| 4. Segment Liabilities | | | | | |
| (a) Treasury | 4,25,752 | 4,37,061 | 3,96,971 | 4,25,752 | 3,96,971 |
| (b) Retail Banking | 11,29,164 | 10,15,940 | 8,59,417 | 11,29,164 | 8,59,417 |
| (c) Corporate/Wholesale Banking | 4,21,459 | 4,22,457 | 3,97,776 | 4,21,459 | 3,97,776 |
| (d) Other Banking Operations | - | - | - | - | - |
| (e) Unallocated | - | - | - | - | - |
| Total Liabilities | 19,76,375 | 18,75,458 | 16,54,164 | 19,76,375 | 16,54,164 |
| Particulars | Q4 FY26 Audited | Q3 FY26 Unaudited | Q4 FY25 Audited | FY26 Audited | FY25 Audited |
|---|
| 5. Capital Employed (Assets - Liabilities) | | | | | |
| (a) Treasury | 44,070 | 28,832 | 30,891 | 44,070 | 30,891 |
| (b) Retail Banking | 69,856 | 71,676 | 65,912 | 69,856 | 65,912 |
| (c) Corporate/Wholesale Banking | 26,074 | 31,377 | 31,871 | 26,074 | 31,871 |
| (d) Other Banking Operations | - | - | - | - | - |
| (e) Unallocated | 7,390 | 11,979 | 10,856 | 7,390 | 10,856 |
| Total Capital Employed | 1,47,390 | 1,43,864 | 1,39,530 | 1,47,390 | 1,39,530 |
Segment EBIT/PBIT Margins (Calculated from reported data)
| Segment | Q4 FY26 EBIT (Rs. Lakhs) | Q4 FY26 Revenue (Rs. Lakhs) | EBIT Margin % Q4 FY26 | Q3 FY26 EBIT (Rs. Lakhs) | Q3 FY26 Revenue (Rs. Lakhs) | EBIT Margin % Q3 FY26 | Q4 FY25 EBIT (Rs. Lakhs) | Q4 FY25 Revenue (Rs. Lakhs) | EBIT Margin % Q4 FY25 |
|---|
| Treasury | 2,170 | 6,904 | 31.43% | 1,800 | 7,477 | 24.06% | 593 | 6,822 | 8.69% |
| Retail Banking | 3,694 | 34,077 | 10.84% | 934 | 27,958 | 3.34% | 1,488 | 20,422 | 7.29% |
| Corporate/Wholesale | 1,097 | 9,318 | 11.77% | (845) | 9,698 | -8.71% | (309) | 11,180 | -2.76% |
| Other Banking Ops | 935 | 935 | 100.00% | 499 | 499 | 100.00% | 946 | 946 | 100.00% |
Note: EBIT margins are calculated by dividing Segment Results (Net of Provisions) by Segment Revenue as reported (no adjustments made).
5. Capex, Projects, and Corporate Activity
- Projects under implementation as on March 31, 2026:
- Opening accounts: 1 account with Rs. 84.27 Cr outstanding
- Sanctioned during quarter: 1 account with Rs. 4.97 Cr
- DCCO achieved during quarter: 7 accounts with Rs. 36.32 Cr
- Closing accounts: 78 accounts with Rs. 234.44 Cr outstanding
- Resolution process involving extension in original/extended DCCO invoked in 6 accounts with Rs. 13.51 Cr outstanding; resolution plan implemented in all 6 accounts.
- No accounts under resolution plan implementation or failure.
- Loan transfers under RBI Master Direction:
- Non-performing assets transferred to Asset Reconstruction Companies: 1 account, Rs. 44.25 Cr principal outstanding, Rs. 3.5 Cr consideration received.
- No SMA loans transferred or loans acquired.
- No write-downs, writebacks, impairments, or restructuring efforts explicitly mentioned.
- Other income includes fees from sale of Priority Sector Lending Certificates: Rs. 3.58 Cr (Q4 FY26), Rs. 5.58 Cr (FY26).
- Labour Codes impact: No material impact on employee benefits; monitored for future developments.
6. Standalone vs Consolidated
- Only Standalone financial results are provided and audited.
- No consolidated financial results are included in the filing.
Summary
- Auditor’s report is clean with no qualifications.
- Strong improvement in profitability and asset quality in FY26 compared to FY25.
- Capital adequacy ratio improved significantly to 18.92%.
- Gross and Net NPAs reduced materially.
- Operating margin doubled YoY to 12.06% for FY26.
- Segment-wise, Retail Banking is the largest revenue contributor with improving profitability; Corporate Banking remains loss-making.
- Projects under implementation increased in number and value, with some resolution plans implemented.
- No material changes in accounting policies or exceptional items.
- Standalone results only; no consolidated data provided.
This detailed extraction provides a comprehensive view of Dhanlaxmi Bank’s audited financial results for Q4 and FY26, suitable for investment analysis and decision-making.
