THRISSUR: The Thrissur-based Dhanalakshmi Bank posted a net profit of Rs.9.51 crores in the financial year 2005-06, making a dramatic turnaround from the net loss of Rs.21.60 crores it had suffered the previous year.

Announcing the annual financial results at a press conference here on Friday, bank chairman A.D. Navaneethan and managing director P.S. Prasad said the operating profit during last fiscal had gone up to Rs.28.24 crores, recording a 54 per cent growth from the previous year's figure of Rs.18.45 crores.

They said the bank director board had recommended a dividend of seven per cent for 2005-06. The total income of the bank increased from Rs.206.88 crores in 2004-05 to Rs.236.94 crores in 2005-06, marking a growth of 14.5 per cent.

The total deposits of the bank grew from Rs.2,339 crores as on March 31, 2005 to Rs.2,533 crores as on March 31, 2006, and advances moved up from Rs.1,512 crores to Rs.1,690 crores during the period.

Replying to questions, they said the bank was planning to shift its market-related offices to Kochi from Thrissur. However, the head office will remain in Thrissur.

They said the bank's capital adequacy ratio had come down from 10.16 per cent in 2004-05 to 9.75 per cent in 2005-06.

The bank is considering both `organic and inorganic routes' for increasing its capital base.

In the organic path, increasing the business levels and going in for public and rights issue are the options.

Merger with other banks will be the option in the inorganic route. All these options are under consideration and we have not taken a decision, they said.

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