Dhanlaxmi Bank stock gains another 5%, up nearly 70% in last 10 sessions; here's why

livemint.com:

Dhanlaxmi Bank surged an additional 5% in today's intraday trade, reaching ₹53.75 apiece, marking highest level since August 2014. In the last 10 trading sessions, the stock has witnessed a remarkable ascent, climbing from ₹30.30 apiece to ₹51.20, reflecting a stellar return of 69%. In the current month so far, the stock has jumped by 75.37%.

Despite this sharp runup, the shares are trading 75% below their all-time high of ₹212 apiece, touched in 2010. On January 01, the bank released its Q3FY24 business update, reporting an 11.5% YoY improvement in its total business, reaching ₹24,657 crore. The bank's gross advances showed healthy growth, reaching ₹10,347 crore in Q3FY24, a notable increase of 11.93% compared to Q3FY23 gross advances of ₹9,244 crore.

Also Read: SJVN share price hits 52-week high on winning 100 MW solar project in Gujarat Additionally, the total deposits of the bank grew by 10.60% YoY to ₹14,310 crore in Q3FY24. The Current Account and Savings Account (CASA) stood at ₹4,459 crore, marking a 5.69% increase from ₹4,219 crore in Q3FY23. The CD ratio for the quarter was reported at 72.31%, showcasing an improvement from 71.45% in the corresponding quarter of the previous year.

The bank gold loan business expanded by 28.36% to ₹2,675 crore, compared to ₹2,084 crore in the corresponding quarter of last year. Also Read: Stocks to buy this week: Bajaj Auto, Inox Wind, PNB among 12 technical picks; do you own any? In the first half of the financial year 2023–24 (H1FY24), the bank achieved its highest-ever half-yearly net profit, reaching ₹51 crore. This impressive result was primarily driven by a substantial improvement in other income, which recorded a remarkable increase of 6163%, reaching ₹75.79 crore