Shares of Dhanlaxmi Bank witnessed a sharp uptick during Monday's trading session, climbing 4.5% to reach ₹26.80 per piece. This rally was fueled by the bank's encouraging business update for the third quarter of the financial year 2025-26, which has set the stage for a potentially strong quarterly performance and revived investor interest in the stock. The bank is yet to announce the official date for its Q3 FY26 results declaration.
Robust Growth Metrics in Q3 FY26 Update
In its latest business update, the Kerala-headquartered private lender reported significant year-on-year growth across key parameters. The total business of the bank surged by 20.76% to reach ₹31,933 crore as of December 31, 2025. This impressive expansion was supported by growth on both the liability and asset sides of the balance sheet.
On the deposits front, total deposits increased by 18.39% year-on-year to ₹17,839 crore. The bank noted a slight improvement in its low-cost deposit mix, with Current Account Savings Account (CASA) deposits rising by 9.04% to ₹5,018 crore during the quarter.
Credit Growth Led by Gold Loans and MSME Lending
The asset side of the business showed even more vigorous growth, indicating robust credit demand. Gross advances expanded by a substantial 23.90% to ₹14,094 crore. A standout performer was the bank's gold loan portfolio, which skyrocketed by 50.89% compared to the same period last year, reaching ₹5,361 crore. This highlights the sustained and strong demand in the secured retail lending segment.
Further bolstering the growth story, the bank's loan book for Micro, Small, and Medium Enterprises (MSME) also saw a healthy increase of 27.72% to ₹2,064 crore from a year earlier. This reflects Dhanlaxmi Bank's continued strategic focus on lending to this vital segment of the Indian economy.
Stock Performance and Market Context
Despite the recent positive momentum, Dhanlaxmi Bank shares have experienced volatility amid broader market fluctuations. The stock has gained nearly 2% over the past one month but has declined by 14% in the last six-month period. Taking a longer-term view, the banking stock has been a significant wealth creator, delivering returns of over 128% in the last five years, effectively doubling investor wealth.
The shares of Dhanlaxmi Bank are traded on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The stock touched its 52-week high of ₹33.38 on June 9, 2025, and hit a 52-week low of ₹22.01 on January 28, 2025. The recent business update has provided a fresh catalyst for the stock, helping it recover from some of the recent pressure.
The detailed quarterly results, which will provide insights into profitability, asset quality (NPA ratios), and net interest margins, are eagerly awaited by the market to assess if the strong business growth has translated into bottom-line performance.
