The bank will continue to share information on the developments for funds raising in public domain as and when they materialise.
Private sector lender Lakshmi Vilas Bank Ltd. (LVB) reported net loss for the first quarter ended June 2020 has narrowed on lower provisioning for bad debts.
The bank posted a net loss of ₹112 crore against ₹237 crore in the year-earlier period. It had registered net profit of Rs.93 crore in the December 2019 quarter, said the bank in a regulatory filing.
Net interest income stood at ₹91 crore while net interest margin at 1.58%. Provisions for the quarter were ₹112 crore against ₹212 crore in the year-earlier period. Provision coverage ratio increased by 1369 bps and stood at 73% against the minimum 70% prescribed under the Prompt Corrective Action framework.
Net non-performing assets rose to 9.64% from 8.30%. In absolute terms, it reduced by ₹241 crore to ₹1,298 crore. Gross NPA rose ₹585 crore to 25.40% (₹4,142 crore).
Total business of the bank was ₹37,471 crore against ₹49,536 crore. Gross advances stood at ₹16,310 crore (₹20,556 crore). The decline is mainly due to hiving-off some low yielding bulk advances and conservative approach of selective security based low risk fresh lending.
On profitability, the bank chief executive officer, S. Sundar said: “the bank continues to enforce cost reduction measures both of direct and indirect costs. Further, it will focus on capital free loans such as gold loans, government-guaranteed loans to optimise profitability without straining capital funds,” he said.
On the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank, he said there may be slight delay in the mutual due diligence and preparation of documents for regulatory requirements due to COVID-19 situation and travel restrictions. Hence, both the parties mutually agreed to extend the exclusivity period till September 15.
The bank will continue to share information on the developments for funds raising in public domain as and when they materialise, he added.
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