Bank stock jumps 8% after company’s advances and deposits grow by up to 20%

Synopsis: Dhanlaxmi Bank has shared a business update for the quarter ended December 31, 2025, giving an overview of how the bank performed during the period. The update highlights the bank’s progress across deposits, advances, and key lending segments, reflecting improved business activity with total business showing healthy year-on-year growth of 20.7 percent and gross advances on the lending side rising 23.9 percent year-on-year.

The shares of the bank engaged in a wide range of banking and financial services which includes lending loans, offering deposits and many other services, jumped up to 8 percent after sharing its business update. 

With the market capitalization of Rs. 1031 Crores, the shares of Dhanlaxmi Bank ltd reached an intraday high of Rs. 26.95, raising  nearly 8 percent from its previous day close of Rs. 24.96 per share. 

Why is the stock up by 8 percent? 

Dhanlaxmi Bank recently gave an update for the quarter ended December 31, 2025, giving an overview of the bank performance during this period and showed healthy growth across deposits, advances, and key lending segments, signaling improving business momentum.

The bank’s total business rose to Rs. 31,933 crore, showing a healthy 20.76 percent increase compared to the same period last year, indicating overall expansion in balance sheet activity. Total deposits climbed 18.39  percent year-on-year to Rs. 17,839 crore, supported by steady growth in customer balances, while CASA deposits increased 9.04 percent to Rs. 5,018 crore, highlighting a gradual improvement in low-cost deposits.

 On the lending front, gross advances grew by a strong 23.90 percent year-on-year to Rs.14,094 crore, driven by higher loan disbursements across key segments. Gold loans saw a sharp jump of 50.89 percent to Rs. 5,361 crore, pointing to robust demand in this segment, while MSME advances increased 27.72 percent to Rs. 2,064 crore, reflecting better credit offtake from small and medium businesses. 

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About the company and Financials

Dhanlaxmi Bank Ltd is engaged in a wide range of banking and financial services which includes lending loans, offering deposits and many other services. The bank has over 560 customer touch points including 261 branches, 282 ATMs and 17 BCs. 57 percent of revenue is contributed by Retail Banking, 17 percent by treasury operations, 24 percent by corporate or wholesale banking, and 2 percent from other banking operations.

Year on Year analysis: Revenue from operations has increased from Rs. 329 Crores to Rs. 384 Crores , up 16.7  percent. Financing profit has improved from a loss of Rs. 19 Crores to a loss of Rs. 11 Crores, improved by 42 percent and Net profit has decreased from Rs. 26 Crores to Rs. 23 Crores, down 11.5 percent 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 368 crores to Rs. 384 Crores, up 4.3 percent. Financing profit has improved from a loss of Rs. 27 Crores to loss of Rs. 11 Crores, improved by 60 percent and net profit has increased from Rs. 12 Crores to Rs. 23 Crores, up 91.66  percent. 

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