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.

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