Rajnath Singh refuses to pinpoint blame about 'rumours' on son

Rajnath Singh refuses to pinpoint blame about 'rumours' on son

There has been some reports of Rajnath Singh's son being ticked off by PM Narendra Modi...
New Flight MH 370 theory

New Flight MH 370 theory

Malaysia Airlines Flight MH370 may have turned south earlier than previously thought

Lakshmi Vilas Bank Q3 net down 76 pct to Rs 7.42 cr on higher provisioning

Feb 15 2014, 05:52 IST
Comments 0
SummaryNet interest income of the bank stood at Rs 125.32 crore...

Lakshmi Vilas Bank (LVB) reported a steep fall of 76.25% in net profit y-o-y to Rs 7.42 crore on Friday due to higher provisioning for bad loans.

Net interest income of the bank stood at Rs 125.32 crore, up 16.99% y-o-y. Asset quality deteriorated sharply and gross non-performing assets (NPAs) increased to Rs 722.20 crore, a jump of 48.29% y-o-y. Net NPAs stood at Rs 550.22 crore, up 70.62% y-o-y.

As a ratio, gross NPAs stood at 5.60% of gross advances, up 38 bps from the September quarter and net NPAs stood at 4.33% of net advances, up 56 bps from the second quarter.

Provisions increased to Rs 67.67 crore from Rs 20.33 crore a year ago. As a result, the bankís capital-adequacy ratio fell 56 bps to 10.46% from the preceding quarter. Earlier in the month, ratings agency Brickwork Ratings downgraded the bankís long-term and Tier-II bond programmes to BBB+ with a negative outlook.

Small private and public sector banks have been reporting huge drops in profit due to rising provisions made for non-performing assets and, hence, eroding their capital-adequacy ratios. Recently, United Bank of India reported a loss of R1,238 crore in Q3 due to provisions for bad loans. United Bank of Indiaís Tier-1 CAR stood at 5.59%, much lower than the minimum 7% under the Basel-III norms. Similarly, Dhanlaxmi Bank reported a loss of R119 crore in the third quarter and its gross NPAs hit an all-time high of 7.05% of the loan book.

Ads by Google

More from Money & Funds

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...