The Performance Appraisal Of Dhanlaxmi Bank Ltd

Published Date: 02 Nov 2017

N-045Industry Name: Finance - Banks - Private Sector

Dhanlaxmi Bank is one of the oldest private sector banks in India, being in operations from the year 1927.It has a major presence in Kerala, especially in the field of micro-credit. The total asset base of the bank is Rs.14628 Cr. Corporate, Retail and Treasury are the main segments of the bank. It also provides other services like Debit Cards, Internet banking, Mobile banking, Phone Banking and Funds transfer. Revenue from retail operations contributes maximum to the total revenue of the bank. The bank was incorporated in the year 1927 and got listed in 1996.

http://www.moneyworks4me.com/ckeditor/userfiles/image/Dhanlakshmi%20Bank1.PNG

Revenue Segregation (FY12):

http://www.moneyworks4me.com/ckeditor/userfiles/image/Dhanlakshmi%20Bank2%281%29.png

Financial Data

Balance sheet (Asset and Liability)

Particulars

March 2012

Liabilities

Share Capital

85.14

Reserves & Surplus

643.11

Net Worth

728.25

Secured Loans

1,721.51

Unsecured Loans

11,804.41

TOTAL LIABILITIES

14,254.17

Assets

Gross Block

250.67

(-) Acc. Depreciation

111.27

Net Block

139.4

Capital Work in Progress.

9.29

Investments.

4,360.16

Inventories

0

Sundry Debtors

0

Cash And Bank

926.06

Loans And Advances

9,241.57

Total Current Assets

10,167.63

Current Liabilities

422.32

Provisions

0

Total Current Liabilities

422.32

NET CURRENT ASSETS

9,745.31

Misc. Expenses

0

TOTAL ASSETS (A+B+C+D+E)

14,254.17

Profit and Loss Statement

 

Mar'12

INCOME:

 

Sales Turnover

1415.34

Excise Duty

0

NET SALES

1415.34

Other Income

0

TOTAL INCOME

1528.68

EXPENDITURE:

 

Manufacturing Expenses

0

Material Consumed

0

Personal Expenses

273.96

Selling Expenses

10.83

Administrative Expenses

183.03

Expenses Capitalized

0

Provisions Made

1.89

TOTAL EXPENDITURE

469.71

Operating Profit

-198.61

EBITDA

-85.27

Depreciation

29.47

Other Write-offs

0

EBIT

-114.73

Interest

1146.13

EBT

-116.63

Taxes

0.05

Profit and Loss for the Year

-116.67

Non Recurring Items

1.05

Other Non Cash Adjustments

0

Other Adjustments

0

REPORTED PAT

-115.63

KEY ITEMS

 

Preference Dividend

0

Equity Dividend

0

Equity Dividend (%)

0

Shares in Issue (Lakhs)

851.36

EPS - Annualised (Rs)

-13.58

Key Performance Indicators

RISK

Capital Adequacy Ratio (CAR) or Capital to Risk Assets Ratio (CRAR) – 9.49

LIQUIDITY

Cash Deposit Ratio – 6.87

Profitability

NIM -1.76

ROA - -0.8%

ROE - -14.7%

Efficiency & Expense control ratios

NPA Ratios

- Gross NPA 104.27

- Net NPA 58

- % of Gross NPA 1.18%

- % of Net NPA 0.66%

Year on year data

 

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Net Interest Income (Rs. Cr.)

53.26

69.38

73.1

83

98.73

104.78

121.62

140.55

265.13

247.52

Y-o-Y Gr. Rt.

-

30.27%

5.36%

13.54%

18.95%

6.13%

16.07%

15.56%

88.64%

-6.64%

Total Income

259.38

249.25

206.88

236.94

276.17

354.52

487.77

625.56

1053.19

1537.3

Y-o-Y Gr. Rt.

-

-3.91%

-17%

14.53%

16.56%

28.37%

37.59%

28.25%

68.36%

45.97%

EPS (Rs.)

3.38

3.93

-4.86

2.14

3.63

8.88

8.96

3.63

3.06

-13.58

Y-o-Y Gr. Rt.

-

16.27%

-223.66%

NA

69.63%

144.63%

0.9%

-59.49%

-15.7%

-543.79%

BVPS (Rs.)

27.07

30.14

25.66

30.22

33.14

53.73

66.21

68.64

99.21

85.54

Y-o-Y Gr. Rt.

-

11.34%

-14.86%

17.77%

9.66%

62.13%

23.23%

3.67%

44.54%

-13.78%

Quarterly Results

 

Dec-12

Gr. Rt. %

Sep-12

Gr. Rt. %

Jun-12

Gr. Rt. %

Mar-12

Gr. Rt. %

Net Interest Income

74.32

17.02

57.8

-14.87

75.02

17.64

52.35

-42.11

Interest Earned

324.65

-10.88

313.87

-14.28

343.85

8.97

347.70

17.4

Total Income

352.11

-9.91

335.86

-18.19

365.08

-1.46

365.42

6.77

Adjusted EPS

0.52

N/A

-2.19

-529.41

-1.39

-447.5

-10.16

-875.57

NIM (%)

2.50

-

0.00

-

0.00

-

0.00

-

Net NPA to Net Advances (%)

2.93

-

2.5

-

0.72

-

0.66

-

CASA (%)

0.00

-

0.00

-

0.00

-

0.00

-

Latest Financials

 

Standalone 

TTM EPS (Rs)

-13.22

TTM Sales (Rs. Cr.)

1330.07

BVPS (Rs.)

82.48

Reserves (Rs. Cr.)

617

P/BV

0.74

PE

0.00

Analysis

From FY02 to FY11, total income has grown from Rs 239 Cr to Rs.1053 Cr i.e. by 17.87%.

During the same period, the net interest income of the bank has grown well at 22.57% from Rs. 42 Cr to Rs. 265 Cr.

EPS shows a negative growth of 5.88%, EPS was Rs. 5.28 has come down to Rs. 3.06. As against this, BVPS has increased at a moderate rate of 9.3% from Rs. 44.55 to Rs.99.21

CASA, an important source of low cost fund for the bank is about 22% of the total deposits.NIM of the bank has been falling over the past 5 years. For FY11, NIM% is 1.94% .This is despite the fact that the bank has high operations in retail segment.

The net NPA of the bank have been high over the past 10 years. However, this year the bank has managed to reduce its net NPA and is just 0.3% of the total advances. This is the lowest Net NPA to net advances% recorded in 10 years. ROA of the bank has been very poor in this decade. FY11, ROA is only 0.23%. ROA had been somewhat good in the year 2009 at 1.19% and after that has declined again. CAR of FY11 is 11.41%, above the RBI requirement of 9%.

Summary:

Negative EPS growth , moderate BVPS

Low Asset Quality , Poor RoA

Moderate level of CASA, NIM

Slow growth in Total income , Net Interest Income