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Lakshmi Vilas Bank net up 78% at Rs 26 crores

Our Bureau

COIMBATORE, June 4

LAKSHMI Vilas Bank (LVB) has posted a net profit of Rs. 26.36 crores and proposed a 45 per cent dividend (subject to RBI approval) for the year ended March 2000.

The audited financial performance of the bank for the fiscal ended March 2000 reveals that its net profit increased by 78.1 per cent compared to Rs. 14.8 crores achieved during the corresponding period of the previous year.

According to Mr. K.R. Shenoy, Chairman, ``this achievement was possible due to conscious reduction in cost of funds, including deposits, increase in credit volumes and income from treasury operations and other non-fund-based business.''

The bank's net worth increased by 20.3 per cent to Rs. 121.74 crores (Rs. 101.23 crores) due to internal accretion to capital.

The capital adequacy ratio as on March 2000 was 10.45 per cent.

The total income rose by 25.2 per cent to Rs. 282.17 crores. Out of the total expenditure (including depreciation) of Rs. 226.73 crores, interest payments accounted for Rs. 162.53 crores (Rs. 143.43 crores) and others at Rs. 64.2 crores (Rs. 57.77 crores ).

Total deposits at Rs. 1,963.41 crores were up by 23.41 per cent compared to the earlier year. Advances swelled by 26.5 per cent to Rs. 1,150.05 crores.

The net NPA level was reduced to 5.38 per cent from the earlier level of 6.72 per cent.

A 30 per cent growth has been envisaged during the current fiscal. Newer strategic initiatives were being designed and developed to broaden LVB's customer base, Mr. Shenoy said and added that the bank proposed to launch a `value-added SB' product shortly . Other customer-friendly products were also on the cards, he said.

He disclosed that the bank proposed to integrate its domestic and forex treasury operations during the year, by shifting its forex dealings from Chennai to Mumbai, to facilitate online real time trading activities in Mumbai.

The bank was also considering the proposal by a multinational company for agency arrangements with the bank for marketing insurance products without risk participation.