NEW DELHI, Oct 15: Chennai-based private sector lender Lakshmi Vilas Bank has reported a 42.3 per cent rise in net profit at Rs 44.83 crore for the second quarter ended September 30.
Bank’s profitability was attributed to an improved asset quality on substantial reduction in non-performing assets (NPAs) leading to reduced allocation for bad loans and contingencies.
Net profit during the same quarter last fiscal was Rs 31.50 crore.
Total income during the July-September quarter rose to Rs 697.88 crore as against Rs 613.87 crore year ago, the bank said in a regulatory filing.
Lakshmi Vilas Bank (LVB) made a provision of Rs 35.57 crore towards bad loans and contingencies during the second quarter, significantly lower from Rs 50.89 crore parked a year ago.
Gross NPAs or bad loans came down to 1.89 per cent of gross advances for the September quarter from 3.72 per cent in the same quarter of 2014-15.
Net NPAs stood at 1.01 per cent of net advance down from 2.78 per cent year ago.
In absolute terms, gross NPAs were at Rs 331.80 crore in the second quarter of current fiscal as against Rs 510.97 crore last fiscal.
Similarly, net NPAs came down to Rs 175.62 crore in the reported quarter from Rs 375.49 crore.
Further, LVB said: “During the quarter ended September 30, 2015, the bank has raised tier-II capital amounting to Rs 141.10 crore, the benefit of which in terms of capital adequacy ratio will accrue in the ensuing quarters.”
(PTI)
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