Date:26/10/2007 URL: http://www.thehindu.com/2007/10/26/stories/2007102652940600.htm

Tamil Nadu

Bank plans to open 15 new branches

Staff Reporter

KARUR: The Karur-based Lakshmi Vilas Bank (LVB) has recorded a net profit of Rs.5.37 crore in the financial year 2007-08 Q2, a good 40 per cent over the Rs.3.83 crore registered during the corresponding period of the last fiscal, according to the new Managing Director, V.S. Reddy. He said the bank planned to open 15 new branches before the end of the current year.

LVB’s net profit for the half year ending September 2007 stood at Rs.20.46 crore, more than 25 per cent over that of the corresponding period last year.

Total income

The total income of the bank for the second quarter grew to Rs.133.50 crore from Rs.114.58 crore in the same period last year. For the half year ended September 2007, the total income earned was Rs.269.82 crore against Rs.219.08 crore in the same period of the previous year. The interest on advances grew from Rs.73.38 crore to Rs.91.04 crore compared to the corresponding period in the previous half-year, a growth of 24 per cent, Mr. Reddy said. The Other Income for the Bank up to September-end touched Rs.27 crore.

Deposits stood at Rs.5,012 crore, while the advances were Rs.3,525 crore, to push the total business mix of the bank to Rs.8,537 crore. The Gross and Net Non-Performing Assets were at 4.46 per cent and 2.20 per cent. In the current fiscal, LVB continued to implement Core Banking Solution (CBS) and covered 141 branches. Efforts were under way to bring all 236 branches under CBS by March 2008.