Dhanlaxmi Bank Limited (DHANBANK)
₹35.79 +7.09% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Dhanlaxmi Bank Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Dhanlaxmi Bank's net interest income was ₹178 Cr (+27.8% year on year, -5.0% on the previous quarter), and net profit ₹24.9 Cr (+107.6% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹178 | +27.8% | -5.0% |
| Operating profit | ₹51.5 | — | — |
| Net profit | ₹24.9 | +107.6% | -42.1% |
| EPS (₹) | 0.63 | +103.2% | -42.7% |
| Gross NPA | 1.82% | — | — |
DHANBANK delivery percentage and bulk deals
NSE end-of-day data for
On Fri, 16 Oct 2026, 45.58% of the DHANBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 48.94%. That is close to its usual level. It traded 2.1 times its average daily volume. 1 bulk or block deal was reported in DHANBANK in the last 60 days: ₹8 Cr bought, none sold.
Delivery in the last 5 sessions: 35.2% · 54.9% · 46.1% · 28.2% · 45.6%
| Date | Side | Counterparty | Value | Price | Quantity | Type |
|---|---|---|---|---|---|---|
| 7 Oct | Buy | Oakendale Private Limited | ₹7.79 Cr | ₹32.23 | 2,417,001 | Bulk |
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Dhanlaxmi Bank Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period covering July 1, 2026 to September 30, 2026. The certificate, issued by Registrar and Share Transfer Agent KFin Technologies Limited on October 6, 2026, confirms all dematerialization requests received were confirmed, mutilated, and recorded within 15 days of receipt. This is a recurring regulatory procedure confirming orderly maintenance of share capital records with no operational or financial impact.
- Compliance certificate covers the quarter ended September 30, 2026 (from 1 July, 2026 to 30th September, 2026)
- KFin Technologies confirmed all demat requests were processed within 15 days of receipt
- Securities involved were confirmed listed and original certificates mutilated and cancelled
Dhanlaxmi Bank reported provisional business updates for the half-year ended September 30, 2026, with total business growing 21.08% YoY to ₹36,500 crore. Gross advances increased 22.29% YoY to ₹15,948 crore, driven primarily by a 53.43% surge in Gold Loans to ₹6,823 crore and a 35.90% increase in MSME advances to ₹2,544 crore. Total deposits expanded 20.15% YoY to ₹20,552 crore, while CASA deposits grew 16.83% YoY to ₹5,769 crore. The figures are provisional and subject to statutory audit review.
- Total Business rose 21.08% YoY to ₹36,500 crore as of September 30, 2026, compared to ₹30,146 crore a year prior.
- Gross Advances grew 22.29% YoY to ₹15,948 crore, up from ₹13,041 crore in September 2025.
- Gold Loans surged 53.43% YoY to reach ₹6,823 crore, now forming nearly 43% of gross advances.
- MSME segment advances expanded 35.90% YoY to ₹2,544 crore from ₹1,872 crore.
- Total Deposits grew 20.15% YoY to ₹20,552 crore, with CASA deposits rising 16.83% YoY to ₹5,769 crore.
Dhanlaxmi Bank announced that shareholders approved the appointment and re-appointment of directors at its 99th Annual General Meeting held on September 23, 2026. Sri. Rajan T.K, a former RBI Chief General Manager with over 34 years of central banking experience, was appointed as an Independent Director for a 5-year term effective July 29, 2026. Sri. T.V Rao, also an ex-RBI official with over 35 years of service, was appointed as an Independent Director for a 3-year term effective September 01, 2026. Additionally, Dr. Jineesh Nath C.K, representing a shareholder entity holding 7.49% of the bank, was re-appointed as a Non-Executive Non-Independent Director liable to retire by rotation.
- Shareholder approval granted at the 99th AGM on September 23, 2026
- Sri. Rajan T.K appointed as Independent Director for 5 years w.e.f. July 29, 2026
- Sri. T.V Rao appointed as Independent Director for 3 years w.e.f. September 01, 2026
- Dr. Jineesh Nath C.K re-appointed as Non-Executive Director; represents entity with 7.49% shareholding
Dhanlaxmi Bank has completed the electronic dispatch of the Notice for its 99th Annual General Meeting (AGM) and the Annual Report for FY 2025-26 on August 31, 2026. The AGM is scheduled to be held virtually on September 23, 2026. The cut-off date to determine voting eligibility is September 17, 2026, with remote e-voting active from September 20, 2026 to September 22, 2026. The share transfer books and Register of Members will remain closed from September 18 to September 23, 2026.
- 99th AGM scheduled for Wednesday, September 23, 2026 at 11:00 AM IST via Video Conferencing.
- Cut-off date for e-voting eligibility set for Thursday, September 17, 2026.
- Remote e-voting window runs from September 20, 2026 (9:00 AM IST) to September 22, 2026 (5:00 PM IST).
- Register of Members and Share Transfer Books to remain closed from September 18 to September 23, 2026.
Dhanlaxmi Bank has scheduled its 99th Annual General Meeting (AGM) for Wednesday, September 23, 2026. The bank has fixed Thursday, September 17, 2026, as the cut-off date to determine shareholder eligibility for voting. The register of members and share transfer books will remain closed from September 18 to September 23, 2026, and the remote e-voting window will be open from September 20 to September 22, 2026.
- 99th Annual General Meeting scheduled for September 23, 2026
- Shareholder cut-off date fixed as September 17, 2026
- Book closure from September 18, 2026 to September 23, 2026 (both days inclusive)
- Remote e-voting window runs from 9:00 AM on September 20 to 5:00 PM on September 22, 2026
Dhanlaxmi Bank has issued the notice for its 99th Annual General Meeting scheduled for September 23, 2026, via video conferencing. Key ordinary and special business items include adoption of FY26 financial statements, appointment of Joint Statutory Central Auditors for FY27 at a remuneration of Rs. 55 lakh, and the appointment of two Independent Directors (Sri Rajan T.K and Sri T.V Rao). The bank is also seeking approval for the Dhanlaxmi Bank Limited Employee Stock Option Plan - 2025. Remote e-voting opens on September 20, 2026, and concludes on September 22, 2026.
- 99th Annual General Meeting scheduled for September 23, 2026, at 11:00 AM IST via VC/OAVM.
- E-voting period set from September 20, 2026 (9:00 AM) to September 22, 2026 (5:00 PM).
- Appointment of Joint Statutory Central Auditors (M/s Abraham & Jose and M/s G Natesan & Co.) for FY27 at Rs. 55 lakh remuneration.
- Shareholder approval sought for appointment of Independent Directors Sri Rajan T.K (5-year term) and Sri T.V Rao (3-year term).
Dhanlaxmi Bank has informed the exchanges that ICRA has assigned ratings to its deposit instruments. Fixed Deposits have been assigned a rating of 'BBB- (Stable)', while Certificates of Deposit received an 'A3' rating. These ratings position the bank at the lower tier of investment grade, reflecting adequate safety relative to timely debt servicing obligations.
- Fixed Deposits assigned 'BBB- (Stable)' rating by ICRA
- Certificates of Deposit assigned short-term rating of 'A3'
- Rating intimation filed on August 20, 2026 under Regulation 30
Dhanlaxmi Bank has informed that rating agency ICRA has reaffirmed the credit rating on its Basel III Tier-II Bonds at [ICRA] BBB- with a Stable outlook. The rating remains at the baseline investment-grade tier, signaling moderate credit risk. With no rating downgrade or upgrade, the announcement indicates status quo on the bank's debt servicing capabilities.
- ICRA reaffirmed the credit rating of Basel III Tier-II Bonds as [ICRA] BBB-
- Rating outlook maintained as Stable
- Disclosure submitted pursuant to Regulation 30 of SEBI LODR on August 19, 2026
Dhanlaxmi Bank has scheduled its 99th Annual General Meeting (AGM) for Wednesday, September 23, 2026, to be conducted via Video Conferencing / Other Audio-Visual Means. The bank has established Thursday, September 17, 2026, as the cut-off date to determine shareholder eligibility for electronic voting. Additionally, the Register of Members and Share Transfer Books will remain closed from September 18, 2026, to September 23, 2026 (both days inclusive). The detailed Notice of the AGM and the Annual Report will be dispatched separately.
- 99th Annual General Meeting scheduled for September 23, 2026 at 11:00 AM IST via VC/OAVM
- E-voting eligibility cut-off date fixed as Thursday, September 17, 2026
- Book closure period scheduled from September 18, 2026 to September 23, 2026 (both days inclusive)
Dhanlaxmi Bank's Board of Directors approved the adoption of the 'Dhanlaxmi Bank Limited Employee Stock Option Plan - 2025' (ESOP 2025). The scheme provides authority to grant up to 27,628,919 equity shares of face value Rs. 10 each to eligible employees. The exercise price will be set at the prevailing market price prior to the grant date, with an exercise window of 4 years post-vesting. The plan is subject to shareholder approval at the upcoming Annual General Meeting.
- Approved formulation of ESOP 2025 with authority to grant up to 27,628,919 employee stock options.
- Each option corresponds to 1 equity share of face value Rs. 10 each fully paid-up.
- Exercise price fixed at market price as on the grant date.
- Vested options can be exercised within a period of 4 years after each vesting.
- Implementation remains subject to approval by the members of the Bank at the AGM.
Dhanlaxmi Bank has appointed Mr. T.V Rao, a former Chief General Manager at the Reserve Bank of India (RBI), as an Additional Independent Director effective September 01, 2026. Mr. Rao brings over 35 years of experience in banking regulation, supervision, and financial inclusion to the board. The appointment is for a three-year term, subject to shareholder approval. This addition is significant for a bank currently managing a high cost-to-income ratio of 88.1% and a small market share of approximately 0.1%.
- Appointment of Mr. T.V Rao as Additional Director (Non-Executive Independent) effective September 01, 2026.
- Mr. Rao served over 35 years at the Reserve Bank of India, retiring as a Chief General Manager.
- The appointment is for a fixed term of 3 years, pending approval from the bank's shareholders.
- Mr. Rao's expertise includes FEMA 1999 compliance, payment systems, and regulation of Banks and NBFCs.
Dhanlaxmi Bank has appointed Mr. Rajan T.K., a former Chief General Manager at the Reserve Bank of India (RBI), as an Additional Director (Non-Executive Independent) for a 5-year term starting July 29, 2026. Mr. Rajan brings over 34 years of experience in banking supervision and cyber/IT risk management from his tenure at the central bank. This appointment strengthens the board's oversight capabilities, which is critical for a bank with a high cost-to-income ratio of 88.1% and a small 0.1% market share. The appointment is subject to shareholder approval within the prescribed timeline.
- Appointment of Mr. Rajan T.K. as Additional Director for a fixed term of 5 years effective July 29, 2026.
- Appointee brings over 34 years of experience from the Reserve Bank of India (RBI).
- Expertise includes serving as RBI's Chief General Manager for Supervision and the Cyber and IT Risk Group.
- The bank currently operates with a high cost-to-income ratio of 88.1% and a TTM PAT of ₹102 Cr.
- Mr. Rajan previously represented the RBI on the boards of two private sector banks, including Dhanlaxmi Bank.
Dhanlaxmi Bank has approved the re-appointment of Shri. Rajan Sleeba as Head of Human Resources for a two-year term starting August 11, 2026. Mr. Sleeba is a veteran with over 40 years of banking experience, including 21 years at Dhanlaxmi Bank across Credit and Branch Banking. This move ensures leadership continuity for the bank's 1,756-strong workforce as it navigates a high cost-to-income ratio of 88.1%. The bank is currently focusing on a ₹297.5 Cr rights issue to fuel its Retail and MSME growth strategy.
- Re-appointment of Shri. Rajan Sleeba as Head - HR for a period of 2 years.
- The new term is effective from August 11, 2026, following a Board meeting on July 29, 2026.
- The appointee brings 40 years of banking experience, with 21 years dedicated to Dhanlaxmi Bank.
- Bank employee strength stood at 1,756 personnel as of December 31, 2024.
- The bank maintains a high cost-to-income ratio of 88.1% as of FY2025.
Dhanlaxmi Bank reported a strong year-on-year performance for Q1 FY27, with net profit doubling to ₹24.91 Cr from ₹12.18 Cr in Q1 FY26. Asset quality showed significant improvement as Gross NPA fell to 1.82% from 3.22% YoY, and Net NPA reached a low of 0.47%. However, on a sequential basis, net profit declined 42.7% from ₹43.49 Cr in Q4 FY26, largely due to a 30.8% QoQ spike in employee costs. The bank remains well-capitalized with a Capital Adequacy Ratio of 19.19%.
- Net Profit surged 104.5% YoY to ₹24.91 Cr, though it declined 42.7% sequentially from Q4 FY26.
- Gross NPA improved significantly to 1.82% compared to 3.22% in the same quarter last year.
- Capital Adequacy Ratio (Basel III) strengthened to 19.19% from 18.26% YoY, providing a solid buffer for growth.
- Provision Coverage Ratio (including technical write-offs) remains robust at 92.77%.
- Total Income grew 18.9% YoY to ₹484.25 Cr, driven by a 24.4% increase in interest earned from advances.
Dhanlaxmi Bank has announced that Mr. Krishnakumar. K has officially taken charge as the Chief Financial Officer (CFO) effective July 10, 2026. This appointment follows the bank's previous communication on June 15, 2026. The bank, with a market capitalization of ₹1333 Cr, is currently navigating a high cost-to-income ratio of 88.1% and a low Net Interest Margin (NIM) of 2.86%. The new CFO will be responsible for managing the bank's financial strategy as it seeks to deploy ₹297.5 Cr from its rights issue into Retail and MSME segments.
- Mr. Krishnakumar. K assumed the role of Chief Financial Officer on July 10, 2026
- The appointment follows the initial board decision communicated on June 15, 2026
- The bank is managing a TTM revenue of ₹1794 Cr with a small market share of ~0.1%
- Strategic focus remains on utilizing a ₹297.5 Cr rights issue for capital infusion
- The bank currently operates with a high cost-to-income ratio of 88.1%
Financial Performance
Revenue Growth by Segment
Total business grew 14.31% YoY from INR 24,687.21 Cr to INR 28,219.11 Cr. Total operating income increased 9.49% from INR 1,360 Cr in FY24 to INR 1,489 Cr in FY25. Treasury segment booked an aggregate profit of INR 49.65 Cr, including a trading profit of INR 13.19 Cr compared to a trading loss of INR 2.29 Cr in the previous year.
Geographic Revenue Split
The bank has a heavy geographic concentration in South India, with over 80% of its 261 branches located in Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Karnataka. Kerala remains the primary hub for operations and financial literacy initiatives.
Profitability Margins
Operating Profit Margin improved by 25.54%, rising from 5.09% in FY24 to 6.39% in FY25. Net Profit grew 15.25% from INR 57.82 Cr to INR 66.64 Cr. However, Return on Net Worth (RoNW) declined by 20.76% from 7.13% to 5.65% due to a significant capital infusion of INR 368.60 Cr.
EBITDA Margin
Operating Profit as a percentage of Working Funds improved by 30.23%, increasing from 0.43% to 0.56% YoY. Core profitability remains constrained by a high operating cost-to-income ratio of 88.1% as of 9M FY2025.
Capital Expenditure
The bank is focusing on infrastructure management through branch shifting and renovations to curtail rental and operational expenditure. While specific total CAPEX figures are not disclosed, the bank successfully raised INR 297.5 Cr via a rights issue in February 2025 to fund growth.
Credit Rating & Borrowing
ICRA assigned a rating of [ICRA]BBB- (Stable) to INR 150 Cr Basel III Tier II bonds. CARE Ratings withdrew its rating on Tier II bonds as the bank repaid the outstanding amount in full. The yield on the investment portfolio was 6.23% as of March 31, 2025.
Operational Drivers
Raw Materials
Not applicable for banking; however, the 'cost of funds' is driven by deposits. Total deposits stood at INR 16,013.45 Cr as of March 31, 2025.
Key Suppliers
Not applicable; the bank relies on a diversified depositor base where the top 20 depositors account for 22.3% of total deposits.
Capacity Expansion
Current network includes 261 branches and 282 ATMs as of December 31, 2024. Employee strength increased 4.15% from 1,686 to 1,756 personnel to support strategic expansion.
Raw Material Costs
Interest expenses are the primary cost. The bank's Net Interest Margin (NIM) is impacted by a suboptimal credit-to-deposit ratio of 73.5% compared to the private sector bank average of 91%.
Manufacturing Efficiency
The bank's credit-to-deposit ratio stood at 73.5% as of December 2024, up from 70.7% in March 2024, indicating improving but still suboptimal asset utilization.
Logistics & Distribution
Distribution is handled through 261 branches and 282 ATMs, primarily concentrated in South India.
Strategic Growth
Expected Growth Rate
10.00%
Growth Strategy
Growth will be driven by the INR 297.5 Cr rights issue capital infusion, focusing on Retail and MSME segments to boost interest revenue. The bank plans to leverage digital channels, Fintech opportunities, and decentralized loan sanctioning with data analytics to scale operations.
Products & Services
Retail loans, MSME loans, corporate banking, CASA deposits, SLR/Non-SLR investments, and forex forward contracts.
Brand Portfolio
Dhanlaxmi Bank.
New Products/Services
Focus on digital learning platforms and enhanced digital channel offerings for business growth; specific revenue contribution percentages for new products are not disclosed.
Market Expansion
Expansion is targeted through 17 Business Correspondents (BCs) and a focus on under-banked areas via financial inclusion initiatives like PMJDY.
Market Share & Ranking
The bank holds a small market share of approximately 0.1% of the net loan book in the Indian banking industry.
Strategic Alliances
The bank has engaged 4 Financial Literacy Centres in Kerala and utilizes 17 Business Correspondents for market reach.
External Factors
Industry Trends
The industry is shifting toward digital-first banking and Fintech integration. Dhanlaxmi is positioning itself by leveraging Fintech opportunities and digital channels to overcome historical growth restrictions under PCA.
Competitive Landscape
Competes with larger private sector banks that have higher CD ratios (91% vs Dhanlaxmi's 73.5%) and lower operating cost-to-income ratios.
Competitive Moat
The bank's moat is its 97-year track record and established retail franchise in South India. This is sustainable due to long-standing customer relationships and a healthy share of retail deposits.
Macro Economic Sensitivity
Sensitive to interest rate variations; the bank measures impact on Economic Value of Equity (EVE) monthly using Duration Gap Analysis.
Consumer Behavior
Increasing demand for digital banking and retail/MSME credit over traditional corporate lending.
Geopolitical Risks
Not specifically detailed, but the bank aligns KYC/AML policies with FATF recommendations to combat global financial crimes.
Regulatory & Governance
Industry Regulations
Operations are governed by the Banking Regulation Act 1949, RBI Master Directions on KYC, and Basel III Capital Regulations. The bank was previously under the Prompt Corrective Action (PCA) framework until Feb 2019.
Taxation Policy Impact
The Finance & Accounts department manages TDS/TCS and GST compliance; specific tax rate % is not disclosed.
Legal Contingencies
The bank manages taxation-related litigations and has taken corrective steps regarding monetary penalties levied by the RBI during the financial year. Specific INR values for pending cases are not disclosed.
Risk Analysis
Key Uncertainties
Asset quality remains a monitorable risk, especially in the retail segment. Fresh NPA generation was 1.48% in 11M FY2025. The vulnerable book (SMA 1 & 2 and restructured) stands at INR 155 Cr (17.6% of Tier I capital).
Geographic Concentration Risk
High concentration in South India, with 80% of branches in five southern states, making it vulnerable to regional economic downturns.
Third Party Dependencies
Dependency on top 20 depositors for 22.3% of total deposits.
Technology Obsolescence Risk
The bank is mitigating tech risk by implementing digital learning platforms, automated credit models, and enhanced cyber governance.
Credit & Counterparty Risk
Gross NPA stood at 2.98% and Net NPA at 0.99% as of March 31, 2025. Fresh NPA generation rate moderated to 1.48% from 1.63% YoY.
