NE BUSINESS BUREAU
KARUR (TN), JULY 14
LVB posted a net profit of Rs. 92.86 crore in the quarter ended March 2020 after posting losses for several quarters. The bank posted a net loss of Rs. 264.43 crore during the same quarter last year.
Interest income on a year-on-year (YoY) basis dropped by 33 per cent to Rs. 455.01 crore (Rs. 682.25 crore) during the fourth quarter, while other income witnessed a three-fold jump to Rs. 174.74 crore (Rs. 57.47 crore).
“Other income consists mostly of treasury profits. Since interest rates have come down, we have made some treasury gains which contributed substantially for the other income,” said S Sundar, Managing Director and CEO said.
However, the asset quality of the bank continued to worsen. GNPA as a percentage of total assets for the March quarter stood at 25.39 per cent spiking from 15.30 per cent during the year ago quarter. NNPA ratio for the latest quarter stood at 10.04 per cent (7.49 per cent).
“Fresh addition to NPA during Q4 is Rs. 314 crore, of which one large account alone accounted for about Rs. 160 crore,” Sundar said, adding, “but for this one large account, our recovery of Rs. 162 crore would have been higher than the slippages.”
Total deposits of the bank for the full year ended March 2020 stood at Rs. 21,443 crore (Rs. 29,279 crore), while total advances for the period stood at Rs.13,828 crore (Rs. 20,103 crore), a release from the Bank said.
The Board of Directors of bank has approved the financial results for the Quarter ended March 31, 2020 at their meeting held in Chennai on July 10, the release added.
