Thrissur-based Dhanlaxmi Bank on Friday said it expects further improvement in asset quality going ahead.

In an interview to CNBC-TV18, T Latha, managing director and chief executive officer, said, "The bank has reported a net profit of Rs 16.9 crore for a quarter ended December 2018 vis-à-vis net loss of Rs 21.74 crore during the same period last year."

"We will be recovering about Rs 30-40 crore in the next two months," she said.

Total income rose to Rs 272.16 crore during the quarter under review as against Rs 270.11 crore in the year-ago period, it said in a regulatory filing.

Gross non-performing assets (NPAs) rose to 8.11 percent of the total advances, from 6.96 percent at the end of the third quarter of 2017-18.

However, net NPAs declined to 2.93 percent from 4.08 per cent a year ago.