Lakshmi Vilas Bank Q1 net loss widens to ₹237 cr1 min read . Updated: 06 Aug 2019, 07:57 PM IST
- Higher provisioning and lower growth in net interest income are the reasons
- Gross NPAs rose to 17.3% as against 10.73% in Q1FY19
Mumbai: Lakshmi Vilas Bank on Tuesday said its net loss widened to ₹237 crore in the first quarter of FY20, mainly on account of higher provisioning and lower growth in net interest income.
The lender had registered a net loss of ₹124 crore in the same period last financial year (FY19).
The provisions of the lender saw a huge decline sequentially and a rise of 31.06% on a year on year basis. In the June quarter of FY20, provisions of the lender stood at ₹211.70 crore as compared to ₹478.77 crore in Q4FY19 and ₹161.53 crore in Q1FY19. The provision coverage ratio of the bank in this quarter stood at 63.08%.
Net interest income (NII), the difference between interest earned on loans and that paid on deposits, of the lender saw a 5.09% decline at ₹123.57 crore in this quarter compared to ₹130.20 crore in Q1FY19.
The net interest margin (NIM), a measure of profitability of banks, of the lender rose to 1.65% in this quarter, as compared to 1.48% in Q1FY19.
The non-interest income of the lender saw a decline of 12.05% at ₹53.22 crore in Q1FY20 as compared to ₹60.51 crore in the same period a year ago.
On the asset quality front, the lender saw a rise in bad assets year-on-year. Gross non-performing assets (NPAs) of the bank in this quarter stood at 17.3%, compared to 10.73% in Q1FY19. Similarly, net NPAs of the bank in this quarter stood at 8.30% compared to 5.96% in Q1FY19.
On Tuesday, the stock closed 4.88% higher at ₹43 on the NSE. In comparison, the benchmark index, Nifty closed by 85.65 points or 0.79% higher at 10,948.25.