Lakshmi Vilas Bank falls 12% as Q2 net loss widens on rise of bad loans

The stock slipped 12% to Rs 82 on the BSE in early morning trade after the bank's net loss widened sequentially to Rs 1.32 billion in September 2018 quarter.

Shares of Lakshmi Vilas Bank have slipped by 12% to Rs 82 per share on the BSE in early morning trade after the bank’s net loss widened sequentially to Rs 1.32 billion in September 2018 quarter (Q2FY19), on account of rising bad loans. The bank had its net loss widened from Rs 1.24 billion in June quarter. It posted a net profit of Rs 105 million in September 2017 quarter (Q1FY19).

The bank’s net interest income during the quarter under review declined 35% at Rs 1.51 billion from Rs 2.33 billion in the corresponding quarter of the previous year.

The gross non-performing assets (NPAs) or bad loans hit 12.31% of gross loans by the end of September 2018 from 5.50% by the same period of 2017. Net NPAs also rose to 6.88% of net advances from 4.33%. The bank said there was fresh slippage of Rs 2.37 billion during the second quarter.

Additionally, the bank said it has reduced its exposure in infra/NBFC/real estate sectors by Rs 18 billion which is a step for reduction of almost 35% of estimated exposure in these sectors during 2017-18.

At 10:28 am; the stock was trading 10% lower at Rs 83.65 on the BSE, as compared to 0.97% decline in the S&P BSE Sensex. A combined 603,095 equity shares changed hands on the counter on the BSE and NSE so far.