Lakshmi Vilas Bank plunges

Lakshmi Vilas Bank is currently the top loser on the BSE, down over 3.5% at Rs.188.25.Its 52-week high and low stands at Rs.209.80 and Rs.125.10 respectively.

The stock has been beaten down as its asset quality showed quite a bit of deterioration. Gross NPA was up from 2.67% to 3.78% (QoQ) and Net NPA too rose from 1.76% to 2.84%. This is a sharp rise and markets most certainly do not take kindly any fall in asset quality, paying little attention to profitability.

On a 23% (YoY) rise in NII at Rs.218 crore, the Bank posted a 9% jump in net profit at Rs.66 crore.

Provisions to cover bad assets and contingencies are up 3.5% (QoQ) but down 68% (YoY) at Rs.112 crore.