Cabinet approves RBI's proposal to merge Lakshmi Vilas Bank with DBS Bank, all branches to function as DBS Bank, says RBI


Union Cabinet on Wednesday approved the merger of capital-starved Lakshmi Vilas Bank (LVB) with DBS Bank India. The Reserve Bank of India on 17 November proposed the merger of the 94-year-old lender with the Indian arm of Singapore’s DBS Bank. As part of the amalgamation, DBIL will infuse fresh capital of Rs.2,500 crore into LVB.

The central bank on 17 November placed Lakshmi Vilas Bank under one-month moratorium, superseded its board and capped withdrawals at Rs.25,000 per depositor. "With the merger, there will no further restrictions on the depositors regarding the withdrawal of their deposit," Union minister Prakash Javadekar said.


Analysts and global credit rating agencies have applauded RBI's move and said that it will benefit both parties. "The quick action taken by the RBI in the Laxmi Vilas Bank matter affirms the faith of the depositors in the banking system," Ajay Shaw, Partner, DSK Legal.


"LVB merger with another bank is a very prudent step in order to save the depositors and to mitigate the systematic disruption associated with it. The image of government and regulator gets enhanced by such timely action and response," said S Ravi, former chairman of Bombay Stock Exchange (BSE) and Managing Partner of Ravi Rajan & Co.


DBS was the first foreign bank to receive a banking licence after the central bank allowed foreign banks to set up a wholly owned subsidiary in 2014. "With DBS likely to use digital capabilities to enhance its physical footprint in India, the proposed deal could lead to a 30-40% increase in Indian assets of DBS," said JPMorgan analysts Harsh Wardhan Modi and Saurabh Kumar.


The regulator had put LVB under Prompt Corrective Action in September 2019. The lender earlier reported widening of its net loss at Rs.397 crore in the second quarter ended September 2020 due to rise in bad loans and provisions. On 25 September, the shareholders of the bank had voted out seven members from the board, including the then MD and CEO S Sundar. The RBI on 27 September appointed the CoD composed of three independent directors Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra, being headed by Meeta Makhan.


Moody’s said the merger will strengthen DBS’s business position in India by adding new retail and small and medium-sized customers.

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Moratorium on Lakshmi Vilas Bank, and what it means for depositors, financial sector


After the failures of IL&FS, Punjab & Maharashtra Cooperative Bank and DHFL, and the bailout of Yes Bank, the Reserve Bank of India decision to impose a 30-day moratorium on Lakshmi Vilas Bank Ltd (LVB) and put in place a draft scheme for its amalgamation with DBS Bank India, a subsidiary of DBS of Singapore, has raised concerns about the safety of the financial system.

Why was LVB put under moratorium and amalgamated with DBS Bank?

The RBI said the financial position of the Chennai-based LVB, which has a network of 563 branches and deposits of Rs 20,973 crore, has undergone a steady decline, with continuous losses over the last three years eroding the bank’s net-worth.

The bank has not been able to raise adequate capital to address these issues. It was also experiencing continuous withdrawal of deposits and low levels of liquidity. Serious governance issues in recent years have led to deterioration in its performance. LVB posted a net loss of Rs 397 crore in the September quarter of FY21, as against a loss of Rs 112 crore in the June quarter. Almost one fourth of the bank’s advances have turned bad assets. Its gross non-performing assets (NPAs) stood 25.4% of its advances as of June 2020, as against 17.3% a year ago.

A recent merger proposal had come from AION-backed Clix Capital but the discussions didn’t work out. The bank was earlier wooed by SREI Capital. It almost tied up with Indiabulls Housing Finance, but the RBI objected to the merger proposal. The bank management had indicated to the RBI that it was in talks with certain investors, but failed to submit any concrete proposal.

Are depositors and the financial system safe?

The RBI, which put a cap of Rs 25,000 on withdrawals, has assured depositors of the bank that their interest will be protected. The combined balance sheet of DBS India and LVB would remain healthy after the proposed amalgamation, with Capital to Risk Weighted Assets Ratio (CRAR) at 12.51% and Common Equity Tier-1 (CET-1) capital at 9.61%, without taking into account the infusion of additional capital.

The RBI had earlier this year bailed out Yes Bank through a scheme backed by State Bank of India and other banks. One safety net for small depositors is the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, which gives insurance cover on up to Rs 5 lakh deposits in banks. The RBI and the government have often assured that the financial system is safe and sound, but a spate of failures have the potential to affect the confidence of depositors.

What has gone wrong with the sector?

The collapse of IL&FS in 2018 had set off a chain reaction in the financial sector, leading to liquidity issues and defaults. Punjab & Maharashtra Co-op Bank was hit by a loan scam involving HDIL promoters and the bank is yet to be bailed out. The near-death experience of Yes Bank in March 2020 sent jitters among depositors. The RBI action against LVB was expected after shareholders recently voted against the appointment of seven directors to its board.

Old-generation private banks had come under the spotlight, with shareholders of LVB and Dhanlaxmi Bank recently firing their chief executive officers in the span of a week. The LVB episode started unfolding after the RBI and banks led by SBI bailed out fraud-hit Yes Bank. The RBI has been monitoring the performance of private banks and large NBFCs.

What happens to investors in these banks?

Shareholders in Yes Bank faced a significant erosion in wealth as the stock price crashed below Rs 10 per share from a peak of Rs 400 per share. In the case of LVB, equity capital is being fully written off. This means existing shareholders face a total loss on their investments unless there are buyers in the secondary market who may ascribe some value to these. Shares of LVB closed at 20% lower circuit Wednesday. In its draft scheme for the amalgamation, the RBI said that “On and from the appointed date, the entire amount of the paid-up share capital and reserves and surplus, including the balances in the share/securities premium account of the transferor bank, shall stand written off.”

In the case of Yes Bank, too, some individual investors faced a total loss on their investments in AT-1 bonds. Nearly Rs 9,000 crore worth of AT-1 bonds sold to various institutional investors, and to high net worth individual investors in the secondary market, were fully written off. As per RBI rules based on the Basel-III framework, AT-1 bonds have principal loss absorption features, which can cause a full write-down or conversion to equity. 📣 Express Explained is now on Telegram

What are the issues facing old-generation private banks?

The functioning of many such banks has been under scrutiny in the last couple of years, as most of them do not have strong promoters, making them targets for mergers or forced amalgamation. Two other South-based banks – South Indian Bank and Federal Bank – have been operating as board-driven banks without a promoter. In Karur Vysya Bank, the promoter stake is 2.11%, and in Karnataka Bank, there’s no promoter. The problems in LVB follow the similar challenges faced by Yes Bank as well as Punjab & Maharashtra Co-operative Bank in recent times.

What has been the regulatory response to these failures?

On July 24, 2004, the RBI, then headed by Y V Reddy, announced a moratorium on private sector lender Global Trust Bank, which was then reeling under huge losses and bad loans. The bank was merged with public sector Oriental Bank of Commerce within 48 hours under an RBI-led rescue plan.

Nearly 16 years later, the RBI has followed a somewhat similar approach on resuscitation of the troubled lenders of Yes Bank and now LVB. The moratorium announcement was followed by a reconstruction plan for Yes Bank and capital infusion by banks and financial institutions, with State Bank of India, ICICI Bank, Kotak Mahindra Bank, HDFC, Axis Bank and others putting in equity capital in the reconstructed entity. While banking observers agree that the RBI has acted whenever a bank or an NBFC faced trouble, the question remains whether it made the interventions swiftly.

Will loan stress caused by the pandemic impact the banking system?

NPAs in the banking sector are expected to increase as the pandemic affects cash flows of people and companies. However, the impact will differ depending upon the sector, as segments like pharmaceuticals and IT seem to have benefited in terms of revenues. NPA accretion in cash-rich sectors like IT, pharmaceuticals, FMCG, chemicals, automobiles is expected to be smaller when compared to areas like hospitality, tourism, aviation and other services.

An expert committee headed by K V Kamath recently came out with recommendations on the financial parameters required for a one-time loan restructuring window for corporate borrowers under stress due to the pandemic. Corporate sector debt worth Rs 15.52 lakh crore has come under stress after Covid-19 hit India, while another Rs 22.20 lakh crore was already under stress. This effectively means Rs 37.72 crore (72% of the banking sector debt to industry) remains under stress. Companies in sectors such as retail trade, wholesale trade, roads and textiles are facing stress, whie NBFCs, power, steel, real estate and construction were already under stress when the pandemic began.

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Lakshmi Vilas Bank Q1 results: Reports net loss

Private sector Lakshmi Vilas Bank has slipped into the red after posting net profit for the March quarter.

The bank on Thursday reported net loss of Rs 112 crore for the June quarter, and said its tier 1 capital has turned negative, which prompted the auditors cast doubts if it can continue as a going concern. The result was announced after market hours.

Its tier 1 capital ratio is at a negative 1.83%, limiting its ability to lend, as against the minimum requirement of 8.875%. Capital adequacy ratio is at 0.17% compared with 6.46% a year ago.

The bank, which has been under Reserve Bank of India's prompt corrective action since September last year, has seen a steady decline in its deposit base since then and rise in non-performing asset (NPA) ratios. Its deposit shrunk 27% to Rs 21161 crore at the end of June.

The bank reported only Rs 9 lakh operating profit for the quarter. In FY20, it had incurred a loss of Rs 836 crore.

"Based on their internal assessment and the likely capital infusion, the bank will be able to realise its assets and discharge its liabilities in its normal course of business and, hence, the financial results have been prepared on a going concern basis," chartered accountants Chandrasekar LLP said in a report submitted to the bank’s board.

"The said assumption of going concern is dependent upon the bank's ability to achieve improvements in liquidity, asset quality and solvency ratios, augment its capital base and mitigate the impact of Covid-19, and thus a material uncertainty exists that may cast a significant doubt on the bank's ability to continue as a going concern," the report said.


Its gross NPA ratio jumped to 25.4% at the end of June from 17.3% a year ago, with the net ratio deteriorating to 9.64% from 8.3% over the same period. 
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Lakshmi Vilas Bank Q2 net loss widens


Private sector Lakshmi Vilas Bank on November 9 reported a net loss at Rs 357.17 crore for the quarter ending September 30, 2019.

The Tamil Nadu based bank had clocked net loss at Rs 132.30 crore during the year-ago period.

For the six month period ending September 30, net loss was at Rs 594.42 crore as against Rs 256.17 crore in the same period last year. Total income for the July-September quarter was at Rs 665.33 crore as against Rs 800.50 crore, the bank said in a press release.

For the half-year period ending September 30, total income was at Rs 1,342.50 crore as against Rs 1,588.00 crore in the year-ago period.
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RBI puts this Private Bank under PCA

In a move that might put a question mark on the proposed merger of Indiabulls Housing Finance Ltd with Lakshmi Vilas Bank, the Reserve Bank of India has placed the private bank under its prompt corrective action (PCA) framework.
In regulatory filing on Saturday, the bank said that the central bank has taken this action owing to high level of bad loans, insufficient capital adequacy ratio, negative return on assets (RoA) for two consecutive years and high leverage. This action, the bank said, was based on the central bank’s risk-based supervision for FY19.
For FY19, the bank’s net NPA stood at 7.49%, capital adequacy ratio was at 7.72% and its RoA was -2.32%.
Under PCA, banks are mandated to cut lending to corporates and focus on reducing concentration of loans to certain sectors. They are also restricted from opening new branches and paying dividends. Banks currently under PCA are United Bank of India, Indian Overseas Bank, Central Bank of India, IDBI Bank and UCO Bank.
“The Reserve bank of India, vide their letter dated 27 September, 2019 has initiated prompt corrective action for Lakshmi Vilas Bank Ltd on account of high net NP A, insufficient capital to risk-weighted assets ratio (CRAR) and common equity tier-1 (CET 1), negative RoA for two consecutive years and high leverage, based on the on-site inspection under the Risk Based Supervision carried out for the year ended 31 March, 2019," it said.
The regulator has also advised the bank on the restrictions put in place and the actions to be taken by the bank, with progress to be reported on a monthly basis to the RBI.
In August, the bank’s chief executive Parthasarathi Mukherjee quit citing personal reasons.
The RBI PCA framework was introduced in December 2002 as a structured early-intervention mechanism along the lines of the US Federal Deposit Insurance Corp.’s PCA framework. Subsequently, in 2017, the framework was reviewed based on the recommendations of the working group of the Financial Stability and Development Council on Resolution Regimes for Financial Institutions in India and the Financial Sector Legislative Reforms Commission.
Meanwhile, in April, the private sector lender had said that its board approved a merger with mortgage financier Indiabulls Housing Finance Ltd in an all stock deal. The merged entity, will be called Indiabulls Lakshmi Vilas Bank and will be among the top eight private banks in India by size and profitability, it had said.

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Lakshmi Vilas Bank Q1 net loss widens

Lakshmi Vilas Bank on Tuesday said its net loss widened to Rs.237 crore in the first quarter of FY20, mainly on account of higher provisioning and lower growth in net interest income.
The lender had registered a net loss of Rs.124 crore in the same period last financial year (FY19).
The provisions of the lender saw a huge decline sequentially and a rise of 31.06% on a year on year basis. In the June quarter of FY20, provisions of the lender stood at Rs.211.70 crore as compared to Rs.478.77 crore in Q4FY19 and Rs.161.53 crore in Q1FY19. The provision coverage ratio of the bank in this quarter stood at 63.08%.
Net interest income (NII), the difference between interest earned on loans and that paid on deposits, of the lender saw a 5.09% decline at Rs.123.57 crore in this quarter compared to130.20 crore in Q1FY19.
The net interest margin (NIM), a measure of profitability of banks, of the lender rose to 1.65% in this quarter, as compared to 1.48% in Q1FY19.
The non-interest income of the lender saw a decline of 12.05% at Rs.53.22 crore in Q1FY20 as compared to 60.51 crore in the same period a year ago.
On the asset quality front, the lender saw a rise in bad assets year-on-year. Gross non-performing assets (NPAs) of the bank in this quarter stood at 17.3%, compared to 10.73% in Q1FY19. Similarly, net NPAs of the bank in this quarter stood at 8.30% compared to 5.96% in Q1FY19.
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Lakshmi Vilas Bank Q4 loss narrow


Private sector lender Lakshmi Vilas Bank’s (LVB) standalone net loss for the fourth quarter ended March 2019 has narrowed down to ₹264.43 crore from the ₹622.25 crore reported for the year-earlier period.

“This quarter, the losses could have been even lower, if we had not made additional contingent provision of ₹150 crore towards loans to SMEs,” said P. Mukherjee, MD and CEO, LVB.

This was made to take care of [any] eventuality, even though, it was not required,” he said.

LVB recovered ₹213 crore, which was higher than slippages of ₹7 crore, he said, adding this trend would continue throughout FY20 and that the bank might bring down its gross non-performing assets by at least ₹1,000 crore and net NPAs by ₹400 crore

This quarter, we recovered dues from 600 accounts, of which the largest debt was ₹20 crore. Last quarter, fresh slippages related to corporate sector. But this quarter, the stress was from MSME and allied sectors. The bank, however, will continue to diversify its business into retail and MSME segments,” he said. Net interest income rose to ₹140.19 crore from ₹120.47 crore. Net interest margin rose to 1.73% from 1.34% last year.Operating expenses contracted to ₹218.86 crore (₹228 crore), and provisions to ₹478.77 crore from ₹921.41 crore.GNPAs rose to 15.3% from 9.98%, and in value terms, it accounted for ₹3,358.99 crore.

Net NPAs increased to 7.49% from 5.66%, representing ₹1,506.29 crore.

The provision coverage ratio stood at 62.8% by end of March 2019.

LVB’s total business declined to ₹51,235 crore from ₹60,314 crore year-on-year. “This is because, we reduced our bulk deposits substantially and depended on retail deposits. Capital shortage was the biggest challenge we faced this year. Until, we get fresh capital infusion, we have to grow our books. The merger process (with Indiabulls Housing) is on and we might raise some capital for the time being,” he said.

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Lakshmi Vilas Bank(LVB) net loss widens in Q3FY19

Private sector lender Lakshmi Vilas Bank (LVB) on Monday reported widening of its net loss to Rs 373.49 crore for third quarter ended December 2018, as bad loans more than doubled year-on-year. It had posted a net loss of Rs 39.23 crore during the corresponding period of the previous fiscal. Sequentially, there was a net loss of Rs 132.31 crore in the second quarter ended September 2018.
Total income also fell to Rs 762.48 crore in October-December 2018 as compared with Rs 817.51 crore, the bank said in a regulatory filing.
The bank's gross bad loans more than doubled to 13.95 per cent of gross loans during the quarter, against 5.66 per cent by in the year-ago quarter.
In value terms, gross bad loans or non-performing assets (NPAs) ballooned to Rs 3,364.28 crore as against Rs 1,427 crore a year ago.
Net NPAs rose to 7.64 per cent (Rs 1,716.22 crore) from 4.27 per cent (Rs 1,060.46 crore).

Also read- Q3FY19 Results of all Public & Private Sector banks in India 
Thus, the provisioning for bad loans and contingencies were raised to Rs 431.39 crore for the quarter, against Rs 85.35 crore in the corresponding period of 2017-18.

Total business stood at Rs 54,910 crore as against Rs 55,851 crore a year ago.
The return on assets plunged to (-) 3.90 per cent in the December quarter, against (-) 0.42 per cent for the year-ago period.
"Over the quarter, the bank has reduced exposure to NBFCs, real estate and infrastructure sectors by Rs 800 crore. Exposure to the NBFC sector is today at Rs 2,136 crore, which is 8.16 per cent of the lending book. There is no NPA in this sector with us," it said in a release.
The bank's exposure to the real estate sector is Rs 3,742 crore, which is 14.3 per cent of the lending book of the bank.
"Out of this exposure, Rs 1,832 crore is to developers. Stress is of Rs 245 crore. The exposure to LAPs (loan against property) is Rs 959 crore. We have not noticed any particular stress in that book," the bank said.
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Lakshmi Vilas Bank(LVB) recruitment for Probationary Officers posts 2018


Lakshmi Vilas Bank has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.



Posts: Probationary Officers

Educational Qualification: Graduates who secured a minimum of 60% (First Class) and studied in regular college affiliated to any recognized university (10+2+3 or equivalent pattern)


Age Limit: Minimum: 20 years, Maximum: 28 years. Candidate born between December 2, 1990, and December 1, 1998 (inclusive of both Dates) are eligible to apply

Application Fee: Rs. 700 /-

Selection Process: Selection will be on the basis of performance in the Online Examination, Group Discussion and Personal Interview. Those candidates who come out successful in the Online Examination shall be called for Group Discussion and Personal Interview thereafter. The Bank reserves the right to make required modification in the selection process.

Important Dates:

Starting Date of Online Application: 05-12-2018
Last Date to Apply Online: 30-12-2018


How to Apply: Interested Candidates may Apply Online Through official Website.


Apply Online: Click Here

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Lakshmi Vilas Bank posts net loss in Q2 as bad loans spike


Lakshmi Vilas Bank(LVB) reported net loss of Rs 132.31 crore in the second quarter ended September 30, on account of mounting bad loans. The private sector lender had registered a net profit of Rs 10.50 crore in the September quarter of 2017-18. Sequentially, the net loss widened from Rs 123.87 crore.

Total income fell to Rs 800.50 crore as against Rs 902.76 crore in the year-ago period, the bank said in a regulatory filing. The gross non-performing assets (NPAs) or bad loans hit 12.31 percent of gross loans by the end of September 2018 from 5.50 percent by the same period of 2017.


Net NPAs also rose to 6.88 percent of net advances from 4.33 percent. In absolute terms, gross NPAs stood at Rs 2,964.89 crore by the end of second quarter this fiscal as compared to Rs 1,277.66 crore in the year-ago period. Net NPAs were at Rs 1,560.08 crore as compared to Rs 993.23 crore.

Thus, provisions for bad loans and contingencies were to be raised to Rs 204.87 crore for the reported quarter as against Rs 187.38 crore set aside for September quarter of 2017-18.
The return on assets (annualised) in the second quarter slipped to (-) 1.34 percent from 0.12 percent in the year- ago period.

The bank has managed to reduce its bulk deposits by Rs 1,800 crore resulting in reduction in interest paid on deposits by Rs 22 crore as compared to June quarter 2018, the lender said.

"This has resulted in net interest income (NII) improving to Rs 150.95 crore in second quarter as compared to Rs 130.20 crore in the first quarter," it said.


The bank said there were fresh slippage of Rs 237.49 crore during the second quarter.

"Residual stress in book is estimated to be around Rs 400 crore only," it said.

Additionally, the bank said it has reduced its exposure in infra/NBFC/real estate sectors by Rs 1,800 crore which is a step for reduction of almost 35 percent of estimated exposure in these sectors during 2017-18.
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Lakshmi Vilas Bank posts loss in Q1FY19


Private sector lender Lakshmi Vilas Bank (LVB) today reported a loss of Rs 123.86 crore for the June quarter on account of a massive jump in bad loans. The bank had logged a net profit of Rs 66.11 crore in the corresponding quarter of the previous fiscal.

Total income during the quarter also declined to Rs 787.50 crore from Rs 927.25 crore in the year-ago period, LVB said in a statement.


With regard to asset quality, the bank's gross non-performing assets (NPAs) surged to 10.73 percent of advances as of June 2018 as against 3.78 percent a year ago. Net NPAs jumped to 5.96 percent as compared to 2.48 percent a year ago.

As a result, provisions for bad loans and contingencies increased to Rs 161.52 crore in the reported quarter from Rs 112 crore in the same period a year ago.

Net Interest Income (NII) decreased to Rs 130.20 crore in the quarter under review from Rs 217.73 crore in first quarter of 2017-18. Net Interest Margin (NIM) of the bank also declined to 1.48 percent as against 2.74 percent as on June 30, 2017.

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Lakshmi Vilas Bank posts loss in Q4 as NPA provisions rise


Private lender Lakshmi Vilas Bank today reported a net loss of Rs 622.25 crore for the last quarter of 2017-18 due to multi-fold jump in provisioning for bad loans. The bank had registered a net profit of Rs 52.16 crore in the January-March period of 2016-17.

Income during the quarter ended March 2018 also fell by 14.3 percent to Rs 740.90 crore as against Rs 864.99 crore in year ago period, the bank said in a release.

Provisions for bad loans and contingencies were raised to Rs 921.41 crore in the quarter, a jump of almost nine-time from Rs 108.19 crore kept aside in the same period of preceding fiscal.

For the full year, the bank posted a net loss of Rs 584.87 crore against a net profit of Rs 256.07 crore in 2016-17, it said.

Income stood at Rs 3,388.43 crore in 2017-18 against Rs 3,349.43 crore in 2016-17.

Gross non-performing assets (NPA) as a percentage of gross loans rose to 9.98 percent as on March 31, 2018, from 2.67 percent by end-March 2017.

Net NPAs rose to 5.66 percent from 1.76 percent. In absolute-terms, gross NPAs were at Rs 2,694.21 crore by the end of March 2018 against Rs 640.19 crore at end-March 2017. Net NPAs were Rs 1,457.89 crore from Rs 418.42 crore.

The provision coverage ratio stood at 55.07 by end of March 2018.
The bank said slippages partially increased due to shifting of some of the restructure accounts to NPA as per the RBI direction. NCLT cases were about Rs 584.33 crore and gems and jewellery account exposure was about Rs 30 crore.


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Lakshmi Vilas Bank Ltd Q3 result, reported net loss


Lakshmi Vilas Bank (LVB)slipped into the red during the third quarter of this fiscal.
For the quarter ended December 31, 2017, the bank has reported a net loss of Rs.39 crore, compared with a net profit of Rs.78 crore in the same period of the previous year on the back of lower operating profit. There was a significant drop in other income and higher provisions made for contingencies.
Operating profit of the bank fell significantly to Rs.46 crore from Rs.171 crore. Other income fell to Rs.27 crore, compared with Rs.150 crore in Q3 of the previous fiscal.
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Lakshmi Vilas Bank (LVB) Recruitment for varios posts 2018

The Lakshmi Vilas Bank (LVB), a very well known private sector bank, is inviting applications from eligible aspirants for filling up the posts of Relationship Managers and Branch Heads on permanent basis. All interested aspirants should apply within 10 days of this notification. Check complete details below.


Name of the Posts: Relationship Managers and Branch Heads


Relationship Manager - MSME


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Lakshmi Vilas Bank Q2 net profit down 84%

Lakshmi Vilas Bank Ltd on Wednesday said its net profit in the second quarter fell 83.81% from a year ago due to higher provisioning.
Net profit fell to Rs10.50 crore for the three months ended 30 September from Rs64.85 crore in the same quarter last year.
Profit was lower than the Rs41.70 crore estimated by a Bloomberg poll of an analyst.
The bank increased provisions during the quarter to Rs187.38 crore from Rs62.57 crore a year ago. In the April-June quarter, the bank had set aside Rs112 crore in provisions.
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Lakshmi Vilas bank Q1 profit up 9% at Rs 66 crore

Private sector Lakshmi Vilas Bank today reported a 8.95 per cent rise in net profit to Rs 66.12 crore in the first quarter ended June 30. The bank had registered net profit of Rs 60.68 crore during the corresponding period last fiscal.

Total income of the company rose to Rs 927.25 crore for the quarter from Rs 774.87 crore in the year-ago period.Assets quality deteriorated with gross non-performing assets, as a percentage of net advances by June 30, 2017, rose to 3.78 per cent during the quarter under review, compared to 2.14 per cent in the same period last year.



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Lakshmi Vilas Bank Q4 result, profit up 6.29% at Rs52.16 crore

Private sector Lakshmi Vilas Bank has reported a 6.29% rise in its fourth quarter net profit ending 31 March, 2017 to Rs52.16 crore. The Tamil Nadu-based bank had reported net profit at Rs49.07 crore during corresponding quarter of previous year.
For the financial year ending 31 March, 2017 the net profit of the bank surged 42% to Rs256.07 crore from Rs180.23 crore registered during year ago period.
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Lakshmi Vilas Bank Q3 result, Profit jumps 70% to Rs78.38 crore

Lakshmi Vilas Bank Ltd on Thursday said its net profit for the December quarter jumped 70.12% from a year ago on higher net interest income, other income and lower provisions.
Net profit for the quarter stood at Rs78.38 crore as compared to Rs46.07 crore a year ago. Two Bloomberg analysts had earlier forecast a net profit of Rs66.75 crore.
Net interest income (NII), or the core income a bank earns by giving loans, increased 14.1% to Rs190.62 crore from Rs167.07 crore last year. Other income surged 116% to Rs150.22 crore from Rs69.33 crore in the same period last year.
Provisions and contingencies fell 23.18% to Rs48.07 crore in the quarter from Rs62.57 crore a quarter ago. On year-on-year (y-o-y) basis, they declined 17% from Rs57.91 crore.
Gross non-performing assets (NPAs) rose marginally by 0.46% to Rs548.6 crore at the end of the December quarter from Rs546.11 crore in the September quarter. On y-o-y basis, it jumped 65.45% from Rs331.57 crore.
As a percentage of total loans, gross NPAs were 2.78% at the end of the December quarter as compared to 2.7% in the previous quarter and 1.82 % in the year-ago quarter. Net NPAs were at 1.82% in the December quarter compared to 1.87% in the previous quarter and 0.8% in the same quarter last year.
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Lakshmi Vilas Bank Q2 result, Profit rises 45%, asset quality weakens

Private sector lender Lakshmi Vilas Bank   's profit in July-September quarter grew by 44.6 percent to Rs 64.85 crore, driven by other income and operating profit despite higher provisions. 

Net interest income, the difference between interest earned and interest expended, increased 16.4 percent to Rs 186.6 crore in same period. Other income (non-interest income) during the quarter jumped 107 percent to Rs 131.9 crore and operating profit surged 70 percent to Rs 158.4 crore on yearly basis. 

Asset quality weakened further in the quarter ended September 2016 as gross non-performing assets (NPA) as a percentage of gross advances climbed to 2.7 percent from 2.14 percent and net NPA rose 1.87 percent to 1.3 percent on sequential basis. 

In absolute terms, gross NPA increased 26.4 percent to Rs 546.1 crore and net NPA jumped 44.5 percent to Rs 376 crore compared to preceding period. Provisions for bad loans shot up 78 percent quarter-on-quarter and 86.4 percent year-on-year to Rs 62.57 crore during July-September quarter.
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Lakshmi Vilas Bank Q1 Result, Profit rises

Lakshmi Vilas Bank Q1 profit rises 51% on NII, low provisions

Private sector lender Lakshmi Vilas Bank 's first quarter (April-June) profit shot up 50.6 percent year-on-year to Rs 60.7 crore on higher net interest income and lower provisions. 

Net interest income, the difference between interest earned and interest expended, grew by 22.2 percent to Rs 177.5 crore in the quarter ended June 2016 from Rs 145.2 crore in same period of last fiscal. 

Other income (non-interest income) increased 12.9 percent to Rs 89.2 crore and operating profit was up by 16.9 percent at Rs 125.8 crore compared with corresponding period of last fiscal. Provisions for bad loans fell 39.7 percent year-on-year (up 29.7 percent quarter-on-quarter) to Rs 35.15 crore in June quarter. 

Asset quality slightly weakened as gross non-performing assets (NPA) increased 17 basis points sequentially to 2.14 percent and net NPA 12 basis points to 1.30 percent in Q1. 

< In absolute terms, gross NPA rose 10.4 percent to Rs 431.9 crore and net NPA increased 12.3 percent to Rs 260.2 crore compared with preceding period.

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