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Lakshmi Vilas Bank will focus on retail banking and recovery of non-performing assets, according to its new Managing Director and Chief Executive Officer Rakesh Sharma.
Sharma took charge of the Karur-headquartered bank on March 7.
Earlier, Sharma had worked with the SBI for over 33 years.
An LVB release, announcing his appointment, said Sharma was an expert in retail and wholesale banking, asset-liability management, loan syndication, trade finance and personnel development.
Sharma, who spoke to Business Line , after assuming charge, said: “Lakshmi Vilas Bank’s result for the quarter ended December 2013 has been good. The operating profit was up 33.85 per cent year-on-year and the net interest income registered a 31 per cent increase. NPA was, however, higher at 5.6 per cent. We intend to reduce this to 3 to 3.5 per cent. Some accounts have already been restructured under CDR.” . The bank has always maintained that its exposure has been fairly dispersed across sectors. When the macro-economic conditions got affected in 2011-12, some of the bank’s customers in infrastructure, textile and real estate sectors were hit.
Sharma said the systemic changes initiated by the board would ensure that the bank emerges stronger in future.
He is also looking at new initiatives such as increasing fee-based income from alternate channels and certain HR initiatives. “It’s still early to say much,” he added.
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