Money & Banking

Lakshmi Vilas Bank Q2 net slips on higher staff costs

Our Bureau Coimbatore | Updated on March 12, 2018

Lakshmi Vilas Bank has registered a lower net profit at Rs 17.93 crore in the second quarter of the current year compared to the previous year period despite earning a near 12 per cent higher interest income.

But in terms of segment revenue, the Karur-based bank has witnessed a near 45 per cent spurt in income from retail banking operations rather than from treasury, though it, too, had marginally moved up.

According to the unaudited results, LVB’s interest income was higher at Rs 429.84 crore (Rs 380.10 crore). Of this, the interest/discount on advances/bills was sharply higher at Rs 343.51 crore (Rs 294.51 crore).

With a hefty jump in other income to Rs 47.16 crore (Rs 31.39 crore), the total income was higher at Rs 477.01 crore ( Rs 411.49 crore).

But with higher employee cost, interest expended, other operating expenses and higher provisioning, the bank saw its net profit shrink to Rs 17.93 crore (Rs 29.12 crore).

The bank also saw its gross NPA double to 4.50 per cent (2.24 per cent).

The net NPA jumped to 2.95 per cent (1.09 per cent). The EPS declined to Rs 1.84 (share face value Rs 10) from Rs 2.99 in the same period last year.

The segment-wise revenue details, however, showed that the bank’s retail banking operations had seen a healthy growth to Rs 221.53 crore (Rs 154.58 crore). However, its corporate/wholesale banking operations witnessed a marginal decline to Rs 164.83 crore (Rs 173.93 crore). Treasury operations’ income edged up marginally to Rs 90.06 crore (Rs 82.60 crore).

Published on November 08, 2012

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