Dhanlaxmi Bank shares surged nearly 8% on Monday, January 6, hitting an intraday high of ₹26.95 apiece following the release of its third quarter business update for FY26. According to the latest market data, the stock jumped 4.5% to ₹26.80 in Monday's trading session, reflecting strong investor confidence in the Kerala-based lender's robust performance metrics. The positive market response demonstrates sustained investor interest in the bank's improving business momentum across key operational parameters during the December quarter.
The Kerala-based lender reported strong operational performance with total business rising 20.76% year-on-year to ₹31,933 crore as of December 31, 2025, compared to the previous year. This represents a significant acceleration from the second quarter, when total business had grown 17.5% to ₹30,147 crore in September 2025. The consistent quarter-over-quarter improvement underscores Dhanlaxmi Bank's ability to maintain robust growth trajectory across its core business segments, reflecting improved market positioning and operational efficiency. The company is yet to announce its Q3 results date, but this business update has laid a strong foundation for the upcoming quarterly performance.
The bank's lending operations demonstrated exceptional growth with gross advances climbing 23.90% to ₹14,094 crore, indicating stronger credit offtake across multiple segments. Growth was particularly impressive in the gold loan portfolio, which surged 50.89% to ₹5,361 crore from the previous year, highlighting sustained demand in the secured retail segment. Additionally, the MSME loan book increased 27.72% to ₹2,064 crore from the year-ago period, underscoring the bank's strategic focus on expanding credit to small businesses and supporting the broader economic recovery.
On the funding side, Dhanlaxmi Bank maintained healthy deposit growth with total deposits increasing 18.39% to ₹17,839 crore from the previous year, supported by a modest pickup in low-cost balances. The bank's current account savings accounts (CASA) deposits increased 9.04% to ₹5,018 crore during the quarter, compared to 6.56% growth to ₹4,937 crore in the second quarter. This improvement in CASA deposit growth demonstrates the bank's enhanced ability to attract low-cost funding, which is crucial for maintaining healthy net interest margins in a competitive banking environment.
Dhanlaxmi Bank shares have shown resilience amid volatile market conditions, with the banking stock gaining nearly 2% in the past month despite falling 14% over the last six months. However, the stock has delivered impressive long-term returns, doubling investors' wealth by soaring over 128% in the last five years. The stock hit a 52-week high of ₹33.38 on June 9, 2025 and touched a 52-week low of ₹22.01 on January 28, 2025. Listed on both BSE and NSE, the current strong business update is expected to boost investor confidence as the bank continues its growth trajectory in the small-cap banking segment.
