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Lakshmi Vilas Bank net profit up 45% at Rs 65 cr

Total income up 19%; sharp rise in NPA due to slippage, bill discounting fraud

Gireesh Babu  |  Chennai 

Lakshmi Vilas Bank net profit up 45% at Rs 65 cr

has posted a 44.6 per cent growth in net profit at Rs 64.84 crore during the quarter ended September 30, 2016, as compared to the net profit of Rs 44.83 crore during the corresponding quarter of previous fiscal year.

The total income grew by 19 per cent to Rs 830.29 crore during the quarter, as against Rs 697.88 crore posted during the corresponding quarter of previous fiscal year.

The cost of funding has been declining in the past months. Decrease in overall interest rates and increase in other income have helped the bank post better numbers, said Parthasarathi Mukherjee, managing director and CEO of the bank.

"We are delighted with our Despite a very difficult situation, the bank has put in a sterling performance," he said. He added that the bank expects the business to be better during the second half of the fiscal year.

Non-performing assets surged due to a bill disounting fraud of Rs 75 crore and slippage of an account of a food processing unit to the tune of Rs 61 crore. In one of the branches, a series of bills were discounted in good faith, and the underlying transactions were found not genuine, he said. The transactions were some trading business transactions, he added.

The gross stood at Rs 546.1 crore (2.70 as a percentage) during the quarter as compared to Rs 331.80 crore (1.89%) during the corresponding quarter.

The net increased to Rs 376.06 crore (1.87 as a percentage) as against Rs 175.61 (1.01%) during the same quarter last year.

The Board of Directors has approved issuance of equity shares of Rs 10 each upto the limit approved by the shareholders, through Quailified Institutional Placement, and has authorised the Capital Raising Committee to determine the form, timing of the issue and issue price.

The bank has approval to issue 4.2 crore shares in different tranches. Mukherjee said that the fund raising is required as the level of capital adequacy ratio is low at 10.10 per cent. According to reports, the bank has been planning to raise around Rs 500 crore.

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Lakshmi Vilas Bank net profit up 45% at Rs 65 cr

Total income up 19%; sharp rise in NPA due to slippage, bill discounting fraud

Total income up 19%; sharp rise in NPA due to slippage, bill discounting fraud has posted a 44.6 per cent growth in net profit at Rs 64.84 crore during the quarter ended September 30, 2016, as compared to the net profit of Rs 44.83 crore during the corresponding quarter of previous fiscal year.

The total income grew by 19 per cent to Rs 830.29 crore during the quarter, as against Rs 697.88 crore posted during the corresponding quarter of previous fiscal year.

The cost of funding has been declining in the past months. Decrease in overall interest rates and increase in other income have helped the bank post better numbers, said Parthasarathi Mukherjee, managing director and CEO of the bank.

"We are delighted with our Despite a very difficult situation, the bank has put in a sterling performance," he said. He added that the bank expects the business to be better during the second half of the fiscal year.

Non-performing assets surged due to a bill disounting fraud of Rs 75 crore and slippage of an account of a food processing unit to the tune of Rs 61 crore. In one of the branches, a series of bills were discounted in good faith, and the underlying transactions were found not genuine, he said. The transactions were some trading business transactions, he added.

The gross stood at Rs 546.1 crore (2.70 as a percentage) during the quarter as compared to Rs 331.80 crore (1.89%) during the corresponding quarter.

The net increased to Rs 376.06 crore (1.87 as a percentage) as against Rs 175.61 (1.01%) during the same quarter last year.

The Board of Directors has approved issuance of equity shares of Rs 10 each upto the limit approved by the shareholders, through Quailified Institutional Placement, and has authorised the Capital Raising Committee to determine the form, timing of the issue and issue price.

The bank has approval to issue 4.2 crore shares in different tranches. Mukherjee said that the fund raising is required as the level of capital adequacy ratio is low at 10.10 per cent. According to reports, the bank has been planning to raise around Rs 500 crore.

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Business Standard
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Lakshmi Vilas Bank net profit up 45% at Rs 65 cr

Total income up 19%; sharp rise in NPA due to slippage, bill discounting fraud

has posted a 44.6 per cent growth in net profit at Rs 64.84 crore during the quarter ended September 30, 2016, as compared to the net profit of Rs 44.83 crore during the corresponding quarter of previous fiscal year.

The total income grew by 19 per cent to Rs 830.29 crore during the quarter, as against Rs 697.88 crore posted during the corresponding quarter of previous fiscal year.

The cost of funding has been declining in the past months. Decrease in overall interest rates and increase in other income have helped the bank post better numbers, said Parthasarathi Mukherjee, managing director and CEO of the bank.

"We are delighted with our Despite a very difficult situation, the bank has put in a sterling performance," he said. He added that the bank expects the business to be better during the second half of the fiscal year.

Non-performing assets surged due to a bill disounting fraud of Rs 75 crore and slippage of an account of a food processing unit to the tune of Rs 61 crore. In one of the branches, a series of bills were discounted in good faith, and the underlying transactions were found not genuine, he said. The transactions were some trading business transactions, he added.

The gross stood at Rs 546.1 crore (2.70 as a percentage) during the quarter as compared to Rs 331.80 crore (1.89%) during the corresponding quarter.

The net increased to Rs 376.06 crore (1.87 as a percentage) as against Rs 175.61 (1.01%) during the same quarter last year.

The Board of Directors has approved issuance of equity shares of Rs 10 each upto the limit approved by the shareholders, through Quailified Institutional Placement, and has authorised the Capital Raising Committee to determine the form, timing of the issue and issue price.

The bank has approval to issue 4.2 crore shares in different tranches. Mukherjee said that the fund raising is required as the level of capital adequacy ratio is low at 10.10 per cent. According to reports, the bank has been planning to raise around Rs 500 crore.

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Business Standard
177 22