Lakshmi Vilas Bank at new high

Lakshmi Vilas Bank hit a new 52-week high today at Rs.114.90, with volumes jumping up almost 3 times. The stock continues to remain strongly in the green.

The stock hit a new high on the back of its very good performance for Q1FY15. This Tamil Nadu based bank recorded a 11% (YoY) jump in net profit at Rs.28 crore. Sequentially, net profit is up 33% and this is despite the tax credit of Rs.19 crore which it added back in Q4.

But the market was more enthused with the improvement in asset quality.  Gross NPA, QoQ improved from 4.19% to 3.96% and net NPA  also got better at 3.19% from 3.44%. Its provisions for bad assets also declined to Rs 33 crore from the Rs.50 crore in the year-ago period and Rs.76 crore in Q4.  CAR as per Basel III stands at 10.49% v/s 10.9% in Q4 and 11.52% in previous Q1.

Menwhile the bank has announced a Rights issue wherein an investor holding six shares shall get five new shares at the rate of Rs 50 per rights equity share.  Record date for the rights is on 28th July.