The Lakshmi Vilas Bank stock is under pressure as significant deterioration in asset quality impacts earnings. In an interview to CNBC-TV18, Parthasarathi Mukherjee, MD and CEO of Lakshmi Vilas Bank spoke about the results and his outlook for the company.
Bank is in the midst of raising capital. Retail book has been doing particularly well and improvement in net interest margins (NIMs) and net interest incomes (NIIs) is because the liability franchise has been doing well, he said.
Expect steady set of NIMs to be in the range of 2.7-3 percent, he added.
Board has approved capital raising of Rs 800 crore through rights issue, said Mukherjee.
The bank has exposure to nine accounts of the top 12 accounts sent to Insolvency and Bankruptcy Code (IBC). I don’t have too much of concern there, he further mentioned.
Loan growth will remain at current levels of 14 percent for FY18. Don't anticipate a sharp increase in credit growth after capital raising, he said.
For full interview, watch accompanying video...
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