FINANCIAL RESULTS FOR THE QUARTER ENDED

FINANCIAL RESULTS FOR THE QUARTER ENDED 30^th Sep 2020

 

Major Performance Highlights Bank  recorded  Operating  Loss  of  Rs 5.66 crore during the QE Sep 20 as against the Operating Loss  of Rs 40.37 crore during the QE Sep 19 .   Bank  recorded the Net  Loss of Rs 396.99 crore during the QE Sep 20 as against the Net  Loss of  Rs 357.17 crore during the QE Sep 2019  . Total Business mix stood at Rs 37,595 crore CASA is 28.94 % of Total Deposit as on 30.09.2020 as against 25 % as on 30.9.2019 and 26.63 %  as on 31.3.2020 Bulk Term Deposit was around  4.34 % of Total Deposits as on 30.9.2020 as against 6.79% as on 30.09.2019. Net NPA  7.01% as against 10.04 % as on 31.03.2020  and 10.47% as on 30th Sep 2019 Cost Income ratio 103.67% during QE 30.09.2020 Vs 124.07% during the QE 30.09.2019 PCR at 79.66%.

 

1.      Capital raise

Despite logistical challenges arising due to COVID-19 situation, we have made significant progress with Clix group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank. There were minor incremental due diligence requested by Clix Group, which was completed this week. Now, the respective sides are in the process of a workable and  mutually acceptable framework.

 

Further, Banks board has approved the issue by equity shares upto Rs 500 crore by way of Rights issue and ICICI Securities is appointed as the merchant Banker for the issue.

 

Bank  will continue to share information on the developments for funds raising in public domain as and when they materialise.

 

 

 

2.      Launching of new digital offering

 

Bank has recently launched ‘DigiGo’, a self-onboarding online instant account opening facility. This is a limited liability account in which the customer needs to submit the relevant KYC documents within a year to convert to a full KYC account.

 

3.      Profitability:  The Bank continues to enforce cost reduction measures both of direct and indirect costs. Further the Bank focusses on capital free loans like Gold Loans, Govt Guaranteed loans to optimise profitability without straining capital funds

 

Performance Highlights:

Lakshmi Vilas Bank (LVB), a south-based private sector Bank, has declared its results for the 2^nd  Quarter ended 30^th Sep 2020.  

 

± Total Business of the Bank was Rs 37,595  crore as of  30.09.2020 as against   Rs 47,115 crore as on 30. 09.2019 and marginally increased over Rs 37,471  crore as of  30.06.2020

±  CASA as a percentage to total deposits stood  at 28.94 % as on 30.09.2020 as against 25 % as on 30.09.2019.

± Gross Advances stood at Rs 16,622 Crore as of  30.09.2020  as against   Rs 16,310 crore as on 30.06.2020 witnessing marginal increase in advance . The Gross Advance stood at   Rs 19,251 crore as on 30.09.2019.

± The Bulk Deposits were reduced by around   Rs 982 crore  to  Rs 911  crore from the level of Rs  1893 crore as on 30.09.2019.

± Operating loss of the Bank stood at  Rs 5.66 .crore  for the quarter ended 30.09.2020 as against the operating loss of  Rs 40.37 crore for the quarter ended 30.09.2019  and  Operating Profit of Rs 0.09  crore for the quarter ended 30.06.2020.

± Cost to Income ratio for the QE Sep 2020 stood at 103.67 % as against the same in quarter ended 30.09.2019 stood to 124.07.%.  

± Net  Loss after Tax is  Rs 396.99 Crore for the quarter ended 30.09.2020 as against Net loss of ` 357.18 crore for the quarter ended 30.09.2019 and  Rs 112.28 Crore for the quarter ended 30.06.2020.

± Net Interest Margin (NIM) of the Bank stood at 1.37 % for the QE ended 30.09.2020 as against 1.47 % for the QE ended 30.09.2019 and 1.58 % for the QE ended 30.06.2020.

Capital Adequacy:

 

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at (2.85)  %  as at 30^th Sep  2020  as against  1.12 %   as at 31.03.2020.

 

NPA

The Gross NPA stood 24.45 % as on 30.09.2020 as against 21.25 % as on 30.09.2019. The Gross NPA stood at 25.39 % as on 31.03.2020 

Net NPA stood at 7.01 %, as on 30.09.2020 as against the Net NPA of 10.47  %, as on 30.09.2019.

Net NPA of 10.04 %, as on 31.03.2020.

 

The provision coverage ratio stood at  79.66 % ( 62.28 % as on 30.09.2019.)  PCR is higher than the minimum of 70% prescribed under PCA.

 

ATMs : All the   ATMs of the Bank  are migrated to Opex model with state of the art technology and highest uptime to serve customers of our as well as all  banks

 

 

Network

 

As on 30.09.2020, Bank has extensive bouquet of digital products of 563 branches, 5 Extension Counters, around a 974 ATMs/CDMs  in about 16  states and 3  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 unaudited financial results for the Quarter ended 30.09.2020 at their meeting held in Chennai   on 7^th Nov 2020.