Shares of Lakshmi Vilas Bank (LVB) hit 10% upper circuit at Rs 18.15 after media reports suggested that DBS Bank, Indostar Capital and Capri Global were among the top suitors for infusing funds in the cash-strapped bank.
LVB was placed under prompt corrective action (PCA) by the RBI in September 2019. The following month, the RBI declined its proposal to merge with Indiabulls Housing Finance.
On the media reports, the bank clarified that it is not aware of any such interest shown by companies' viz., DBS Bank India or lndostar Capital Finance or Capri Global any other private sector bank as mentioned in the articles. The Bank hence denies the news articles pertaining to the same.
LVB is reportedly the only private-sector lender facing operational curbs from the banking regulator.
The stock has added 22.63% in three sessions from its recent closing low of Rs 14.80 recorded on 5 February 2020.
The bank will declare its third quarter earnings on 14 February 2020. LVB reported a net loss of Rs 357.18 crore in Q2 September 2019 as compared to a net loss of Rs 132.31 crore in Q2 September 2018. Total income declined 16.9% to Rs 665.33 crore in Q2 September 2019 over Q2 September 2018.
The bank's gross non-performing assets (NPAs) stood at Rs 4091.05 crore as on 30 September 2019 as against Rs 3556.58 crore as on 30 June 2019 and Rs 2964.89 crore as on 30 September 2018.
The ratio of gross NPAs to gross advances stood at 21.25% as on 30 September 2019 as against 17.30% as on 30 June 2019 and 12.31% as on 30 September 2018.
The ratio of net NPAs to net advances stood at 10.47% as on 30 September 2019 as against 8.30% as on 30 June 2019 and 6.88% as on 30 September 2018.
The bank's provisions and contingencies soared 54.6% to Rs 316.81 crore in Q2 September 2019 from Rs 204.87 crore Q2 September 2018.
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