Lakshmi Vilas Bank

Lower provisioning expense and improved asset quality were the highlights of Lakshmi Vilas Bank’s Q2FY16 results. Provisions contracted 40% QoQ to Rs. 36 crore, from Rs. 60 crore in Q1FY16, while at the same time, net NPA showed a steep decline to 1.01% of net assets, from 1.72% as of 30-6-15. Likewise gross NPA are also lowered to 1.89%, as of 30-9-15, from 2.72% QoQ.

Core operations also showed improved performance, with Net Interest Income rising 10.3% sequentially to Rs. 160 crore, on back of 3.3% surge in interest income. Despite 19% QoQ fall in other income to Rs. 64 crore, total income for the September quarter came in marginally higher at Rs. 698 crore, from Rs. 693 crore in the June 15 quarter. EPS for Q2FY16 stands at Rs. 2.50, vis-à-vis Rs. 2.25 for Q1FY16 and 7.37 for FY15. Bank’s RoA also strengthened to 0.71%, from 0.65% in the immediately preceding quarter.