Comments
Lakshmi Vilas Bank (LVB) has seen a significant rise in net loss at ₹237 crore for the quarter ended June 30, 2019, when compared to a net loss of ₹124 crore in the year-ago period.
It reported an operating loss (before provisions and contingencies) of ₹26 crore, against a profit of ₹7 crore in the year-ago quarter.
Provisions and contingencies increased to ₹212 crore, compared to ₹162 crore in the year-ago period. Its interest income fell to ₹624 crore from ₹727 crore, while other income dropped to ₹53 crore from ₹61 crore.
The private sector lender’s asset quality weakened further during the first quarter of this fiscal, as gross NPA as a percentage of gross advances, increased to 17.30 per cent from 10.73 per cent in the year-ago quarter and 15.30 per cent in the preceding quarter.
Net NPA rose to 8.3 per cent from 5.96 per cent in Q1 of the previous fiscal and 7.49 per cent on sequential basis. Its provision coverage ratio stood at 63.08 per cent as on June 30, 2019.
Exposure to CCD
The bank has no exposure on Cafe Coffee Day (CCD) or its subsidiaries. However, it has funded coffee growers and suppliers of coffee beans to Coffee Day Global Ltd (CDGL), in the normal course of business against the receivables from CDGL.
In addition to this, the bank has funded Kumergode Estate Ltd and Malavika Hegde, and these two loans are backed by collaterals of fixed deposits, land and fixed assets.
All the above facilities are further backed by the personal guarantee of late VG Siddhartha.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.