Old private sector lender Dhanlaxmi Bank reported a net loss of ₹134 crore in the fourth quarter ending March 31, 2014 due to increased bad loans and a drop in other income.
The bank had made a profit of ₹29 crore in the same quarter a year ago.
Net interest income (interest earned less interest expended) increased 12 per cent to ₹78 crore as compared to ₹69 crore in the fourth quarter FY13. Other income declined by more than half to ₹19 crore in Q4FY14 from ₹44 crore in Q4FY13.
Gross non-performing assets or bad loans worsened to ₹456 crore as on March 31, 2014 from ₹380 crore as of March-end FY13. Net NPAs also increased to over ₹300 crore from ₹260 crore in the year-ago period.
During the quarter, provisions set aside towards bad loans jumped 260 per cent to Rs 119 crore as against Rs 33 crore set aside last year.
The gross and net NPA ratio was up 5.98 per cent and 3.80 per cent as a percentage of total loans from 4.82 per cent and 3.36 per cent respectively.
However, sequentially, the gross and net NPAs improved from 7.05 per cent and 4.64 per cent respectively as of March-end 2013.
Full year results
For the full year ended FY14, net loss stood at ₹252 crore as against a profit of ₹3 crore in FY13.
As on March 31, 2014, total advances nudged up 2 per cent to ₹7,936 crore from ₹7,777 crore, while deposits rose 8 per cent to ₹12,133 crore as compared to ₹11, 202 crore as on March end FY13.
Dhanlaxmi Bank’s board, at its meeting held on Friday, did not recommend any dividend for FY 2013-14.
Earlier this month, the board re-appointed Jayakumar P G as Managing Director & CEO for a further period of six months till November 17.
On Friday, the bank’s shares had ended at Rs 47 per share, higher by 1.3 per cent over the previous close on BSE.