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Lakshmi Vilas Bank (LVB)slipped into the red during the third quarter of this fiscal.
For the quarter ended December 31, 2017, the bank has reported a net loss of ₹39 crore, compared with a net profit of ₹78 crore in the same period of the previous year on the back of lower operating profit. There was a significant drop in other income and higher provisions made for contingencies.
Operating profit of the bank fell significantly to ₹46 crore from ₹171 crore. Other income fell to ₹27 crore, compared with ₹150 crore in Q3 of the previous fiscal.
Provisions and contingencies were higher at ₹85 crore, compared with ₹48 crore in the year-ago period.
The total income of the bank was lower at ₹ 818 crore, against ₹879 crore in Q3 of the previous fiscal.
Gross NPA as a percentage of gross advances increased to 5.66 per cent in Q3 of this fiscal from 2.78 per cent in Q3 of the previous fiscal and 5.50 per cent in the preceding quarter of this fiscal.
Net NPA also rose to 4.27 per cent as of December 31, 2017 from 1.82 per cent in the year-ago quarter. But it was marginally lower when compared with 4.33 per cent in Q2 of this fiscal.
While announcing its Q2 results, the bank had said that it detected a fraud worth ₹80.43 crore relating to commodity finance transactions. But, it expressed confidence over recovery of the full amount. It had to set aside a provision of ₹20.1 crore in the September quarter.
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