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LVB Q2 loss widens to Rs 357 cr as bad loans rise, total income declines

Gross NPA at 21.25% of gross advances, compared with 12.31% a year ago; net NPA rise to 10.47% from 6.88%

Gireesh Babu  |  Chennai 

Lakshmi Vilas Bank

(LVB) has reported a loss of Rs 357.17 crore for the quarter ended September 30, 2019, as compared to Rs 177.30 loss during the same quarter last year. The total income declined 17 per cent to Rs 665.33 crore from Rs 800.50 crore during corresponding quarter of last year.

Gross non-performing assets (NPA) grew to Rs 4,091.05 crore, or 21.25 per cent of gross advances, during the quarter from Rs 2,964.89 crore (12.31 per cent) in the same quarter last year. The Net NPA rose to Rs 1,772.66 crore (10.47 per cent) from Rs 1,560.08 crore (6.88 per cent) a year ago.

Provisions for NPA and dimunition value of all restructured accounts doubled to Rs 303.07 crore during the quarter compared to Rs 146.05 crore in the same period last year. Capital Adequacy Ratio (CAR) under Basel III was 5.56 per cent as compared to 9.67 per cent same period a year ago. The Bank has been put under Prompt Corrective Action framework (PCA) by RBI from September 27, 2019.

The Bank has sent a detailed letter to Economic Offences Wing (EOW), Delhi, explaining its stand and assured to extend full co-operation in the investigation related to its dispute with the RHC Holding Pvt Ltd and Ranchem Pvt Ltd, group companies of Religare Finvest Ltd, as the EOW has registered FIR against the Directors of Board of LVB, RHC Holding and directors on the Board of RHC Holding.

First Published: Sat, November 09 2019. 19:26 IST