Dhanlaxmi Bank Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2023

2. The above unaudited financial results for the quarter and nine months ended December 31, 2023, were reviewed by the Audit Committee and recommended for approval to and approved by the Board of Directors at its meeting held on February 2, 2024. These Results have been subjected to "Limited Review” by the Joint Statutory Central Auditors of the Bank, M/s Krishnamoorthy & Krishnamoorthy, Chartered Accountants and M/s Sagar & Associates, Chartered Accountants and an unqualified review report has been issued by them.



3. The Bank has followed the same significant accounting policies in the preparation of interim financial results as those followed in the annual financial statements for the year ended 31st March 2023.



4. The financial results have been arrived at after considering provision for standard assets (including requirements for exposures to entities with unhedged foreign currency exposures), provision for non-performing assets, provision for non-performing investments and other usual and necessary provisions.



5. As per extant RBI guidelines, banks are required to make Pillar 3 disclosures including leverage ratio, liquidity coverage ratio and Net Stable Funding Ratio under the Basel III framework. Accordingly, such applicable disclosures have been placed on the website of the Bank which can be accessed at the following link: https://www.dhanbank.com/pillar-iii-disclosure/. These disclosures have not been subjected to audit or review by the Joint Statutory Central Auditors of the Bank.



6. The loans transferred/ acquired during the quarter ended December 31, 2023 under the RBI Master Direction on Transfer of Loan Exposures dated September 24, 2021 is Nil.



7. Reserve Bank of India vide letter dated October 4, 2021 has permitted all member banks of Indian Banks' Association covered under the 11th Bipartite Settlement to amortize the additional liability on account of revision in family pension over a period not exceeding five years, beginning with the Financial Year ended March 31, 2022. The Bank had recognized the entire additional liability estimated at Rs. 1429 Lakhs and opted to amortize the same over a period of five years beginning with the financial year ended March 31, 2022. However, the Bank had amortized an amount of Rs.714 lakhs up to the nine months ended of December 31, 2023 of FY 2024 and an amount of Rs.143 lakhs only has been carried forward as unamortized expenditure in respect of the said additional liability. Total amount amortized until the quarter ended 31.12.2023 is Rs. 1286 lakhs.



9. The Bank has made an adhoc provision of Rs. 1715 lakhs up to the nine months ended December 31, 2023 towards the New Bipartite Wage Settlement, which will be effective from November 1, 2022, to employees under IBA stream under the head ‘Provisions and Contingencies’.



10. Reserve Bank of India by an Order dated January 8, 2024 has imposed a monetary penalty of Rs. 120.47 lakhs for noncompliance with certain directions issued by RBI on ‘Loans and Advances - Statutory and Other Restrictions’, ‘RBI Know Your Customer (KYC) Directions 2016’ and ‘RBI (Interest rate on Deposits) Directions 2016’. The same has been accounted as per Accounting Standard 4- ‘Contingencies and Events Occurring after the Balance Sheet date’ and is reflected on the financials of December 31, 2023.



11. Bank had been computing Net worth considering application Software as an intangible asset. However, bank has changed its approach with respect to the treatment of application software for the computation of networth. Consequently, Bank has not deducted application Software from Net worth from the quarter ended Dec 31, 2023. Comparative figures are also restated accordingly. The consequential positive impact on Capital to Risk Weighted Assets Ratio has been carried out for the quarter ended Dec 31, 2023.



12. Oher Income includes fees earned from services to customers, commission from non-fund-based banking activities, earnings from foreign exchange transactions, selling of third-party products, profit/ loss on sale of investments (Net), profit/loss on revaluation of investments, recoveries from written off accounts etc.



13. Provision coverage ratio (including Technical Write off) as on December 31, 2023 is 88.64 %.



14. The figures for the previous period have been re-grouped/re-arranged wherever necessary to conform to the current period’s classification.