Dhanlaxmi Bank down as auditors uncomfortable with accounts

Stocks

oi-Sunil

By Sunil Fernandes

Updated: Monday, August 13, 2012, 13:53 [IST]

Reports in the Economic Times that the auditors Walker Chandiok & Co - the local audit arm of the management and audit consultancy Grant Thornton - have put a question mark on Dhanlaxmi Bank's performance numbers for the quarter ended June 2012, saw the stock losing 3% in trade today.

"It is believed that the auditors were not comfortable with the sudden spurt reported by the bank in its yield on advance for the June quarter. The bank's yield on advances - which simply put, is the ratio between total interest income on advances and average advance outstanding for the period - rose to 13.27% from 11.35% in the previous quarter," the Economic Times has reported.

The shares of the bank were traded 3% lower at Rs 48 on the Bombay Stock Exchange. Dhanlaxmi Bank had posted a net loss of Rs 11.81 crore in the quarter ended June 2012 as against profit of Rs 3.4 crore in a year ago period.

Dhanlaxmi Bank Ltd is a Kerala based bank, which provides a wide array of banking services. The bank has been in the rumours for being financially stressed. The employees union of the bank had earlier this year alleged fraud at the bank.

GoodReturns.in