Lakshmi Vilas Bank (LVB), private sector Bank, has declared its results for the ended 31.03.2019

NII for the fourth quarter this year stood at `140.19 crore (`120.47 crore during the fourth quarter last year and `138.79 crore during the third quarter this year)

Lakshmi Vilas Bank (LVB), a south-based private sector Bank, has declared its results for the  Quarter / Financial year ended 31.03.2019.

Performance Highlights:

• Total Business of the bank reached `51,235crore as of 31/03/2019, as against Rs. 60,314 crore as on 31<sup>st</sup> March 2018 ,a decrease of 15.05%.
• CASA grew from `7,015 crore as on 31.03.2018 to `7,515 croreas on 31.03.2019, registering Y-o-Y growth of 7.12%.
• CASA as a percentage to total deposits stood higher at 25.67% as against 21.06% 
  as on 31.03.2018.
• Gross Advancesstood at`21,956 croreas against `27,005 crore as on 31/03/2018, Y-O-Y decline of 18.70% , mainly due to hiving-off some low yielding bulk advances.
• Total Deposits declined from`33,309 crore as on 31/03/2018 to `29,279 crore as on 31/03/2019, adeclineof  12.10%,  mainly due to the  reduction in the  bulk deposits.
• Net Interest Margin (NIM) of the bank stood at 1.73% for the quarter Q4 FY19 as against 1.34% for Q4 FY 18, whereas the Net Interest Margin (NIM) of the bank stood at 1.65 % for the Year ended March 2019 vs 2.38% of the previous year..
• Operating loss of the bank stood at `21.19 crore for the quarter ended 31/03/2019 as against Operating loss of  `25.10 crore for the quarter ended 31/12/2018 and Operating loss is `69.25crore for the quarter ended 31/03/2018.
• The Bank has reported operating  Loss of ` 11.97 crore for the year ended 31<sup>st</sup> March 2019 as against the Operating Profit of `355.38 crore during the  year ended 31s March 2018.
• Cost to Income ratio for the Q4 FY19 stood to110.72% as against 112.55% in Q3 FY19 (sequentially). The Cost to Income Ratio for the  current  year stood at 101.48%  vs  68.76% . (Y-o-Y)
• Net Loss of  the Bank was`264.43crore for the quarter ended 31/03/2019as against net loss of `373.49 crore for the quarter ended 31/12/2018.
• Net Loss of  the Bank was `894.10 crore for the year ended 31/03/2019 as against net loss of `584.87 crore for the year ended 31/3/2018.
• Bank continues to diversify its business into Retail and MSME  segmentsand as on 31/03/2019, the Corporate Loan book is at 34% as against  the Corporate Loan book size of 51% as on 31/03/2018.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 7.72% as at 31/03/2019as against 7.57% as at 31/12/2018 and 9.81% as at 31/3/2018.

During the year 2018-19, the Bank has raised Capital aggregating to `459.59 crore fromthe Qualified Institutional Buyers.

NPA

The Gross NPA stood15.30% as on 31/03/2019, as against 9.98% as on 31/03/2018. Sequentially, it has gone up from 13.95%as on 31/12/2018. Net NPA stood at 7.49%, as against5.66% as on 31/03/2018, and sequentiallyagainst 7.64% as on 31/12/2018. The provision coverage ratio vastly improved to62.08 % (55.07% as on 31/03/2018 and 55.93% as on 31/12/2018).

New Initiatives

1. Bank has upgraded the existing core banking solutions to the new version  Flexcube 11.7.
2. Bank is also implementing fraud and risk module to improve the operational risk mechanism and online real-time transaction tracking monitoring as part of KYC and AML
3. Bank has implemented Financial Services Funds Transfer Pricing & Performance Analyzer, Profitability Management through Oracle Financial Services Analytical Applications (OFSAA) and also in the process of implementing various other modules viz., ALM, LRM, FCCM etc.
4. Bank has set up “Trade Finance Centre” (TFC) in Chennai, a centralised Back office to process the entire Trade Finance related transactions of the Bank  including  the SWIFT operation.
5. Bank has centralized the credit operations and monitoring function through its “Commercial Banking Branches” located in 7 centers . This is  under the Control of “CBO” in Head Office, which enables to detect and report frauds quickly – To take steps to recover the losses in a time bound manner- To improve the Documentation Quality – Timely tracking and follow up of SMA accounts.

Other Development:

Bank’s Board has  approved the  merger of IHFL and its wholly owned subsidiary, Indiabulls Commercial Credit Ltd., (ICCL) into and with LVB under sections 230 to 232 and other applicable provisions of the Companies Act 2013, as amended, Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, as amended, and other rules and regulations framed thereunder.  The Scheme is subject to the receipt of approval from the Reserve Bank of India, Other Regulatory approvals and all other applicable compliances.  

Network

As on 31/03/2019, Bank has 569 branches, 5 Extension Counters, 1046 ATMs in 18 states and 1 union territory, the Bank offers various bouquets of products and services. The Bank is committed to build a sustainable business over the long term and upholding high standards of customer service – Life Smiles Where LVBServes.Tamil Nadu continues to be the dominant contributor of business for the Bank. The branch and business concentration is as follows:

The Board of Directors of The Lakshmi Vilas Bank Limited approved the financial results for the Quarter/ Financial  Yearended 31/03/2019at their meeting held in Bengaluru on 28^th May 2019.

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