Below is a structured extraction and summary of the relevant and actionable financial information from the Dhanlaxmi Bank Limited unaudited results filing for the quarter and half year ended September 30, 2025.
1. Auditor’s Note
- The Independent Auditors’ Limited Review Report by Sagar & Associates and Abraham & Jose is unqualified.
- No qualifications, concerns, or issues were raised.
- The review was conducted as per applicable standards (SRE 2410).
- The auditors confirm the financial results are prepared in accordance with Indian GAAP, RBI guidelines, and SEBI regulations.
- Pillar 3 disclosures under Basel III (Leverage Ratio, Liquidity Coverage Ratio, Net Stable Funding Ratio) are disclosed on the bank’s website but were not reviewed by auditors.
- No material misstatements or non-compliance with prudential norms were noted.
Conclusion: Auditor’s report is clean with no qualifications.
2. Financial Performance
Summary of Key Financials (Rs. in Lakh)
| Particulars | Q2 FY26 (30.09.25) | Q1 FY26 (30.06.25) | Q2 FY25 (30.09.24) | H1 FY26 (30.09.25) | H1 FY25 (30.09.24) | FY25 (31.03.25) |
|---|
| Interest Earned | 38,861 | 36,776 | 32,883 | 75,137 | 63,467 | 1,31,988 |
| - Interest/discount on advances | 30,796 | 29,998 | 25,808 | 60,794 | 50,302 | 1,06,290 |
| - Income on investments | 7,227 | 6,406 | 5,806 | 13,633 | 11,617 | 22,625 |
| - Interest on balances with RBI | 178 | 199 | 230 | 377 | 318 | 1,462 |
| - Others | 160 | 173 | 1,039 | 333 | 1,230 | 1,611 |
| Other Income | 3,455 | 3,930 | 5,181 | 7,385 | 8,391 | 16,920 |
| Total Income | 41,816 | 40,706 | 38,064 | 82,522 | 71,858 | 1,48,908 |
| Interest Expended | 24,165 | 22,866 | 20,800 | 47,031 | 41,395 | 83,659 |
| Operating Expenses | 14,832 | 14,512 | 13,951 | 29,344 | 27,479 | 55,739 |
| - Employee Cost | 8,504 | 8,367 | 7,996 | 16,871 | 16,022 | 31,364 |
| - Other Operating Expenses | 6,328 | 6,145 | 5,955 | 12,473 | 11,457 | 24,375 |
| Total Expenditure (excl. provisions) | 38,997 | 37,378 | 34,751 | 76,375 | 68,874 | 1,39,398 |
| Operating Profit before provisions | 2,819 | 3,328 | 3,313 | 6,147 | 2,984 | 9,510 |
| Provisions & Contingencies | 499 | 2,110 | 57 | 2,609 | 528 | 2,348 |
| Profit before Tax | 2,320 | 1,218 | 3,256 | 3,538 | 2,456 | 7,162 |
| Tax Expense | 675 | 675 | 498 | - | - | - |
| Net Profit after Tax | 2,320 | 1,218 | 2,581 | 3,538 | 1,781 | 6,664 |
| EPS (Basic & Diluted) (Rs.) | 0.59* | 0.31* | 0.99* | 0.90* | 0.68* | 2.37 |
| Capital Adequacy Ratio (Basel III) | 17.81% | 18.26% | 13.06% | 17.81% | 13.06% | 16.12% |
| Gross NPA (Rs. Lakh) | 40,434 | 10,195 | 42,126 | 40,434 | 42,126 | 36,411 |
| Net NPA (Rs. Lakh) | 14,285 | 13,862 | 12,032 | 14,285 | 12,032 | 11,794 |
| Gross NPA % | 3.10% | 3.22% | 3.82% | 3.10% | 3.82% | 2.98% |
| Net NPA % | 1.12% | 1.13% | 1.12% | 1.12% | 1.12% | 0.99% |
| Return on Assets (Annualized) | 0.49% | 0.27% | 0.22% | 0.38% | 0.22% | 0.41% |
| Operating Margin | 6.74% | 8.18% | 8.70% | 7.45% | 4.15% | 6.39% |
| Net Profit Margin | 5.55% | 2.99% | 6.78% | 4.29% | 2.48% | 4.48% |
*Note: Quarterly EPS is not annualized.
3. Detailed Notes / Management Commentary
- The results were approved by the Board on October 29, 2025.
- Financials prepared as per Indian Accounting Standards (AS 25 for interim reporting), RBI guidelines, and Companies Act.
- No change in accounting policies compared to previous year.
- Provisions include standard asset provisions, non-performing assets (NPA) provisions, and other necessary provisions.
- Other income includes fees, commissions, profit/loss on sale of investments, forex transactions, and written-off accounts recoveries.
- Deferred Tax Assets (DTA) as on September 30, 2025, stand at Rs. 5.1 crore (vs Rs. 5.7 crore on March 31, 2025).
- No loans were transferred or acquired during the half year ended September 30, 2025.
- Provision Coverage Ratio (including technical write-offs) is 86.94% as of September 30, 2025.
- Exposure under Resolution Framework for COVID-19 related stress (RFC) stands at Rs. 18.27 crore as on September 30, 2025, down from Rs. 22.15 crore on March 31, 2025.
- No investments in Security Receipts from Asset Reconstruction Companies during the half year.
- Previous period figures have been regrouped/rearranged for consistency.
4. Segment Information
Segment Revenue (Rs. in Lakh)
| Segment | Q2 FY26 | Q1 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | FY25 |
|---|
| Treasury | 7,413 | 7,638 | 6,927 | 15,051 | 12,928 | 25,673 |
| Retail Banking | 23,791 | 21,858 | 21,960 | 45,649 | 40,636 | 81,914 |
| Corporate/Wholesale Banking | 10,283 | 10,928 | 8,843 | 21,211 | 17,779 | 39,794 |
| Other Banking Operations | 329 | 282 | 334 | 611 | 515 | 1,527 |
| Total Revenue | 41,816 | 40,706 | 38,064 | 82,522 | 71,858 | 1,48,908 |
Segment Results (Net of Provisions) (Rs. in Lakh)
| Segment | Q2 FY26 | Q1 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | FY25 |
|---|
| Treasury | 531 | 1,720 | 2,777 | 2,251 | 3,193 | 4,832 |
| Retail Banking | 1,806 | 141 | 1,032 | 1,947 | 521 | 3,760 |
| Corporate/Wholesale Banking | (346) | (925) | (887) | (1,271) | (1,773) | (2,957) |
| Other Banking Operations | 329 | 282 | 334 | 611 | 515 | 1,527 |
| Total | 2,320 | 1,218 | 3,256 | 3,538 | 2,456 | 7,162 |
Segment Assets (Rs. in Lakh)
| Segment | 30.09.25 | 30.06.25 | 30.09.24 | 31.03.25 |
|---|
| Treasury | 4,84,800 | 4,72,808 | 3,71,555 | 4,27,962 |
| Retail Banking | 9,46,219 | 8,96,041 | 8,24,472 | 8,74,168 |
| Corporate/Wholesale Banking | 4,88,077 | 4,90,266 | 4,04,617 | 4,80,808 |
| Other Banking Operations | - | - | - | - |
| Unallocated | 11,287 | 10,904 | 11,303 | 10,856 |
| Total | 19,30,383 | 18,70,019 | 16,14,947 | 17,93,694 |
Segment Liabilities (Rs. in Lakh)
| Segment | 30.09.25 | 30.06.25 | 30.09.24 | 31.03.25 |
|---|
| Treasury | 4,61,255 | 4,30,339 | 3,36,327 | 3,96,971 |
| Retail Banking | 8,76,479 | 8,40,452 | 7,86,883 | 8,11,770 |
| Corporate/Wholesale Banking | 4,50,917 | 4,58,747 | 3,86,169 | 4,45,424 |
| Other Banking Operations | - | - | - | - |
| Unallocated | - | - | - | - |
| Total | 17,88,651 | 17,29,538 | 15,09,379 | 16,54,165 |
5. Capex, Projects, and Corporate Activity
- Capital Expenditure: Rs. 1,191 lakh incurred during H1 FY26 (vs Rs. 1,185 lakh in H1 FY25).
- Proceeds from issue of share capital: Nil in H1 FY26; Rs. 14,168 lakh in H1 FY25.
- Proceeds from share premium: Nil in H1 FY26; Rs. 15,061 lakh in H1 FY25.
- Tier II Capital Instruments: Rs. 15,000 lakh raised in H1 FY26; Rs. 15,000 lakh repaid in H1 FY25.
- No acquisitions, disposals, or restructuring activities mentioned.
- No write-downs, writebacks, or impairments reported.
- No loans transferred or acquired during the half year ended September 30, 2025.
- Provision coverage ratio is strong at 86.94%.
6. Standalone vs Consolidated
- Only Standalone financial results are provided and reviewed.
- No consolidated results are presented.
Additional Notes
- Deposits: Rs. 1,46,31,48 lakh as on 30.09.2025 (down from Rs. 1,60,13,45 lakh on 31.03.2025).
- Advances: Rs. 1,07,17,42 lakh as on 30.09.2025 (down from Rs. 1,19,59,49 lakh on 31.03.2025).
- Borrowings: Rs. 15,000 lakh as on 30.09.2025 (down from Rs. 20,000 lakh on 31.03.2025).
- Net Worth: Rs. 1,19,715 lakh as on 30.09.2025 (up from Rs. 1,17,950 lakh on 31.03.2025).
- Cash and Balances with RBI: Rs. 78,174 lakh as on 30.09.2025.
- NPA Trends: Gross NPA ratio improved to 3.10% from 3.82% YoY; Net NPA stable at 1.12%.
- Return on Assets: Improved to 0.49% in Q2 FY26 from 0.22% in Q2 FY25.
- Capital Adequacy: Strong at 17.81% as on 30.09.2025, up from 13.06% YoY.
Summary for Investment Analysis Team
| Aspect | Key Highlights |
|---|
| Auditor’s Opinion | Clean, unqualified limited review report. |
| Revenue Growth | Total income up 9.9% QoQ and 9.9% YoY for Q2 FY26; H1 FY26 income up 14.8% YoY. |
| Profitability | Net profit increased QoQ and YoY; Q2 FY26 net profit Rs. 23.20 crore vs Rs. 25.81 crore in Q2 FY25 (slight dip QoY). H1 FY26 net profit Rs. 35.38 crore vs Rs. 17.81 crore in H1 FY25 (strong growth). |
| Margins | Operating margin declined QoQ but improved YoY; net profit margin improved QoQ and YoY. |
| Asset Quality | Gross NPA ratio improved to 3.10% from 3.82% YoY; provision coverage strong at 86.94%. |
| Capital Adequacy | Strong at 17.81%, significantly higher than previous year. |
| Segment Performance | Retail Banking is largest revenue contributor and showed strong profit growth QoQ and YoY. Treasury segment profit declined QoQ and YoY. Corporate Banking remains loss-making. |
| Capital & Liabilities | Deposits and advances declined compared to March 2025 but improved compared to previous year. Borrowings reduced. |
| Capital Raising | No fresh equity raised in H1 FY26; Tier II capital raised Rs. 150 crore. |
| Cash Flow | Operating cash flow positive at Rs. 115.72 crore in H1 FY26; investing cash flow negative due to investments and capex. Financing cash flow positive due to Tier II capital issuance. |
| No major corporate actions or restructuring reported. | |
This detailed extraction provides a comprehensive view of Dhanlaxmi Bank’s financial health, performance trends, asset quality, and segment-wise results for the latest quarter and half year, suitable for investment decision-making.
