Lakshmi
Vilas Bank Net Loss Narrows to Rs 334 cr for the Third Quarter ended 31st December 2019
Major Performance Highlights
ü
Total
Business stood at `.41,100crore.
ü
CASAstood
at 25.88% of Total Deposit
ü
No
additional slippage on net basis as against `.534
crore in Q2.
ü
Net
NPA reduced to 9.81% from 10.47%.
ü
NII
for the Q3 FY20increased to `.125.91crore
from `.109.67crorein Q2.
ü
Operating
and Net loss reduced in Q3.
Lakshmi
Vilas Bank (LVB), a south-based private sector Bank, has declared its results
for the Quarter ended 31.12.2019.
Performance Highlights:
± Total
Business of the bank was`.41,100crore
as of 31/12/2019, as against `.54,910crore
as on 31stDecember 2018.
± CASA
as a percentage to total deposits stood higher at 25.88% as on 31/12/2019 as
against 22.85% as on 31.12.2018.
± Gross
Advancesstood at`.17,535croreas
against `24,123
crore as on 31/12/2018, Y-O-Y decline of 27.31%.
± Total
Deposits declined from`.30,787crore
as on 31/12/2018 to `.23,565crore
as on 31/12/2019.
± Net
Interest Margin (NIM) of the bank improved and stood at1.97%for the Q3FY20as
against 1.47% in Q2 FY 20and as against
the NIM of 1.65 % of the Q3 of the previous
year.
± Operating
loss of the bank reduced and stood at `.19.85crore
for the quarter ended 31/12/2019 as against Operating loss of `.40.37
crore for the quarter ended 30/09/2019 and the Operating Lossof`25.10crore
for the quarter ended 31/12/2018.
± Cost
to Income ratio for the Q3 FY20 reduced to 110.38% and forQ2 FY20stood to
124.07% (sequentially). The Cost to
Income Ratio for the Q3 FY19 stood at 112.56% (Y-o-Y).
± Loss
before tax provisionreduced to`.334.48for
the quarter ended 31/12/2019 as against `.357.17crore
for the quarter ended 30/09/2019and `.456.49crore
for the QE 31/12/2018 (Y-o-Y).
Capital Adequacy:
The Bank’s total
Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 3.46%as
at 31/12/2019,as against 5.56% as at 30/09/2019
and7.57% as at 31/12/2019.
NPA
The Gross NPA stood at 23.27
% as on 31/12/2019 as against 21.25% as
on 30/09/2019 sequentially.
Net NPA stoodlower at
9.81% as against 10.47% as on 30/09/2019.
The provision coverage
ratio improved to68.70% (62.28% as on 30/09/2019 and 63.08% as on 30/06/2019
and 55.93% as on 31/12/2018).
Other Developments:
Reserve bank of India,
vide their letter dated September 27, 2019 has initiated Prompt Corrective
Action for Lakshmi Vilas Bank Limited .The Prompt Corrective Action is aimed at
improving the performance of the Bank and will not have any adverse impact on
the normal day-today operations of the Bank including acceptance / repayment of
deposits in the normal course. The Bank managed its liquidity well with the
Liquidity Coverage Ratio of over 200%
Bank
has bagged an award as“Best Performing Private Bank Award” for performance under
“ Atal Pension Yojana” from Pension Fund Regulatory and
Development Authority. The Pension Fund Regulatory and Development Authority (PFRDA),
a statutory body, is the pension regulator of India which was established by
Government of India and was authorized
by Ministry of Finance, Department of Financial Services.
Our Bank has
been featured among Top 10 Banks in India on digital transactions by National Payment
Corporation of India and MEIT based on
the increasing Debit and Digital transactions surpassing 100% Achievements on
budgets set by NPCI & MEIT.
Bank has introduced
LVB’s first Exclusive Offer Platform: LVB JOY –“Just Offers for You “ for
our customers of specific segment and this program will strengthen our bond
with Existing clients and featuring offers from over 40+ most popular Online
and Offline Brands across major categories.
The main objective of LVB
JOY are
· On-boarding
New customers to the Bank.
· Increase the
LVB debit card adoption among these focused CASA segments and get a primary
card status, thus increasing the Balances in these accounts.
Steps Taken by the Bank
and future Plan:-
1.
Bank had already in the process of
shifting our lending focus from Corporate clients to MRC and Retail lending.
2.
Bank had taken various measures
including the centralization of the
payment of expenses at Head office to monitor and rationlise the cost wherever
feasible and taken simultanoues
steps to boost other income. Bank has reduced staff strength and has rationlaised the staff in administrative office and redeployed them in branches to
market new customers and to engage in recovery measures . We expect that these
measures will results
reduction in our Cost to Income
Ratio.
3.
The Bank raised CET-I capital of
Rs.459.59 crores in March, 2019 through QIP route. It also raised another
Rs.188.16 crores in CET I capital in July 2019 by a Preferential Allotment
process. In the AGM held on 27th September, 2019, the Bank’s shareholders have
approved a resolution enabling the management to raise Rs.1000 crores of CET I
capital and another Rs.500 crores of Debt capital, simultaneously increasing
the authorised capital of the Bank from Rs.500 crores to Rs.650 crores. Bank is
considering various option to improve the Capital.
Network
As
on 31/12/2019, Bank has 571 branches, 5 Extension Counters, 1019 ATMs in 18
states and 1 union territory, the Bank offers various bouquets of products and
services. The Bank is committed to build a sustainable business over the long
term and upholding high standards of customer service - Life Smiles Where LVB Serves. Tamil Nadu continues to be the
dominant contributor of business for the Bank.
The Board of Directors
of The Lakshmi Vilas Bank Limited approved the financial results for the Quarterended
31/12/2019at their meeting held in Chennai on 14th February 2020.
No comments:
Post a Comment