Lakshmi Vilas Bank (LVB) standalone net profit fell 84% to ₹10.5 crore in the second quarter ended September 2017 against ₹64.8 crore recorded in the year-earlier period on higher provisioning.
During the period under review, the bank increased its provisioning from ₹62.57 crore to ₹187.38 crore.
Net non-performing assets (NPA) rose by 164% to ₹993 crore from ₹376 crore in the year-earlier period. The net NPA, as a percentage of total advances, stood at 4.33% against 1.87%.Gross NPA, as a percentage of total advances, stood at 5.50% in the second quarter compared with 2.70% in the year ago period at ₹1,277.65 crore.
At the end of first quarter 2018, the bank had identified a ‘watch list’ of accounts amounting from ₹2,200 crore to ₹2,300 crore. The slippages during the current year were almost entirely from the ‘watch list’ accounts and the same is reflected in the provisions.
The bank reported a 9.34% growth in its total deposits to ₹29,171 crore while gross advances increased by 14.63% to ₹23,216 crore. Capital adequacy ratio of the bank stood at 10.57% against 10.10% in the comparable year earlier period.
Meanwhile, executive director and chief financial officer N. S. Venkatesh quit following his appointment as MD and CEO of the Association of Mutual Funds in India (AMFI).
On Wednesday, the resignation letter was placed before the board and it was accepted. Mr. Venkatesh will be relieved from his services at the close of office hours on October 21, 2017. On Wednesday, bank shares lost 3.95% to close at ₹140.95 on the BSE.
