Karur-headquartered Lakshmi Vilas Bank has reported a net profit of ₹21.03 crore for the quarter ended March 2014 compared with ₹17.10 crore during the corresponding period of the earlier fiscal.

The year-on-year profit however, slipped to ₹59.65 crore from ₹91.57 crore (last fiscal). “This drop in the net profit is mainly on account of higher provisioning,” said Rakesh Sharma, the bank’s Chief Executive and Managing Director.

Provisions (other than tax) and contingencies increased to ₹76.38 crore for the quarter ended March 2014 (₹46.04 crore).

“Two major accounts have been restructured; we have made 10 per cent provision for salaries. That apart, a sum of ₹85 crore pertaining to last year was provided for in the just ended fiscal. In the process, the bank’s provision coverage ratio has increased to 53 per cent,” he told Business Line . The bank is also looking to strengthen its presence in the South.

“We added 70 branches during the last fiscal and are looking to add another 75-80 branches this year. The expansion will take place mostly in the South and in pockets where we need to strengthen our presence,” Sharma said.

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