Lakshmi Vilas Bank Q2 net declines 83% on higher provisioning for bad loans

A commodity transaction fraud that took place at some of its branches also impacted the profit

Shares of Lakshmi Vilas Bank (LVB) fell nearly 4 per cent on Wednesday after it reported an 83.4 per cent drop in net profit during the second quarter ended September 30. The bank scrip closed 3.95 per cent lower at Rs 140.95 on the BSE.
 
The private sector lender’s net profit fell to Rs 10.50 crore for the July-September period due to higher provisioning for bad loans. It had reported a net profit of Rs 64.84 crore in Q2FY17.
 
Provisioning for bad loans and contingencies jumped to Rs 187.38 crore for the second quarter of 2017-18, as against