74th Day Of Lockdown

Maharashtra80229286942849 Tamil Nadu2869415762235 Delhi2633410315708 Gujarat19119130111190 Rajasthan100847359218 Uttar Pradesh97335648257 Madhya Pradesh89965878384 West Bengal73032912366 Karnataka4835169357 Bihar4598223329 Andhra Pradesh4250256573 Haryana3597120924 Telangana32901627113 Jammu and Kashmir3142104835 Odisha247814819 Punjab2415204347 Assam19894434 Kerala170071215 Uttarakhand115328610 Jharkhand7642975 Chhatisgarh6781892 Tripura6221730 Himachal Pradesh3691636 Chandigarh3022225 Goa126570 Manipur124110 Puducherry90330 Nagaland8000 Arunachal Pradesh3710 Meghalaya33131 Mizoram1710 Sikkim200
Business Companies 09 Nov 2019 Lakshmi Vilas Bank Q ...

Lakshmi Vilas Bank Q2 net loss widens to Rs 357cr as bad loan soars

PTI
Published Nov 9, 2019, 5:39 pm IST
Updated Nov 9, 2019, 5:39 pm IST
The bank had posted a net loss of Rs 132.31 crore in the July-September of 2018-19.
Total income of the bank also fell to Rs 665.33 crore during the second quarter of 2019-20 as compared to Rs 800.50 crore.
 Total income of the bank also fell to Rs 665.33 crore during the second quarter of 2019-20 as compared to Rs 800.50 crore.

New Delhi: Private se0ctor Lakshmi Vilas Bank (LVB) on Saturday reported widening of net loss to Rs 357.18 crore for the second quarter ended September.

The bank had posted a net loss of Rs 132.31 crore in the July-September of 2018-19.

 

The loss widened sequentially also as it had registered a Rs 237.26 crore loss in June quarter this fiscal.

Total income of the bank also fell to Rs 665.33 crore during the second quarter of 2019-20 as compared to Rs 800.50 crore in the year-ago period, the bank said in a regulatory filing.

Interest income was down at Rs 607.33 crore, as against Rs 729.29 crore a year ago.

The bank's bad loan ratio worsened with gross non-performing assets hitting 21.25 per cent of the gross advances at the end of September quarter, from 12.31 per cent a year ago. In absolute value, the gross NPAs stood at Rs 4,091.05 crore, higher than Rs 2,964.89 crore.

Net NPAs also rose to 10.47 per cent (Rs 1,772.66 crore) from 6.88 per cent (Rs 1,560.08 crore).

Provisions for bad loans and restructured accounts spiked to Rs 303.07 crore for September quarter, as against Rs 146.05 crore in the year-ago period.

During 2017-18, the bank had adjusted deposit loans aggregating to Rs 794 crore, extended to RHC Holding Private Limited and Ranchem Private Limited, group companies of Religare Finvest Limited against its deposits, the bank said.

"Disputing the said adjustment, Religare Finvest Limited has filed a suit against the bank in May, 2018 before the High Court of Delhi and the same is being defended appropriately by the bank. The matter still remains subjudice," it added.

The Reserve Bank of India advised that the bank may on a prudential basis maintain provision to cover potential losses for the "claims against the bank not acknowledged as debt". As per legal opinions received by the bank, the adjustment of deposits against loans is lawful and tenable, it said further.

Hence, the bank management's decision on recognition and measurement of provisions on this score depends on the verdict of the court in the said suit. The bank holds a contingent provision of Rs 200 crore as on 30 September 2019, it added.

Also, the bank has submitted replies to the clarifications sought by Sebi. EOW, Delhi has registered FIR against Directors of Board LVB, RHC Holding and Directors on the Board of RHC Holding. The Bank has sent a detailed letter to EOW explaining its stand and assured to extend full co-operation in the investigation.

Besides, the bank has been put under Prompt Corrective Action framework (PCA) following the RBI letter dated September 27, 2019.

"Certain actions have been prescribed, such as bringing in additional capital, restricting further lending to corporates, reducing NPAs and improving the Provision Coverage Ratio to 70 per cent. The bank is obliged to carry out the actions prescribed by RBI," LVB said.

Bank's provision coverage ratio as on September 30, 2019 stood at 62.28 per cent.

The lender said it is currently in the process of evaluating the option to move to the lower corporate tax, as enacted by the government through an amendment to the Income Tax Act in September this year.

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT