Lakshmi Vilas Bank Q2 profit tanks 84% on spike in provisions; NPAs worsen
Provisions for bad loans in Q2 shot up 199.4 percent to Rs 187.4 crore compared with year-ago quarter. The sequential rise in provisions was 67.3 percent.
Private sector lender Lakshmi Vilas Bank's second quarter earnings disappointed the Street on Wednesday as net profit fell sharply by 84 percent year-on-year to Rs 10.5 crore. It was dented by higher provisions. Even its asset quality was bad but net interest income growth was strong.
Profit in the year-ago quarter stood at Rs 64.8 crore.
Net interest income, the difference between interest earned and interest expended, grew by 24.7 percent to Rs 232.7 crore compared with Rs 186.7 crore in same quarter last fiscal.
Asset quality deteriorated further in the quarter gone by. Gross non-performing assets as a percentage of gross advances have seen steep increase at 5.50 percent, from 3.78 percent in previous quarter while net NPA jumped to 4.33 percent from 2.84 percent on sequential basis.
Provisions for bad loans in Q2 shot up 199.4 percent to Rs 187.4 crore compared with year-ago quarter. The sequential rise in provisions was 67.3 percent.The stock price closed at Rs 140.95, down 3.95 percent amid high volumes on the BSE.