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Lakshmi Vilas Bank Q3 FY19 results

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Major Performance Highlights
 Total Business stood at `.54,910 crore (`.55,851 crore Y-O-Y).
 CASA portfolio has grown by `.554 crore from `.6,482 crore to `.7,036 crore. CASA stood at 22.85% as on 31.12.2018 as against 21.17% as on 31.12.2017.
 NII for the nine months stood at `.419.95 crore (`.670.13 crore during the corresponding period last year.
 NII for the third quarter this year stood at `.138.79 crore (`. 219.67 crore during the third quarter last year and `.150.95 during the second quarter this year)
 NIM stood at 1.65% Vs 1.74% sequential Q-O-Q.

Lakshmi Vilas Bank (LVB), a south-based private sector Bank, has declared its Third Quarter results for the current financial year today. Performance Highlights:
 Total Business of the bank reached `.54,190 crore as of 31/12/2018, as against Rs.55,851 crore,a decrease of 1.68%.
 Gross Advances stood at `.24,123 crore as against `.25,231 crore on 31/12/2017, Y-O-Y decline of 4.39%.
 Total Deposits rose from `.30,620 crore as on 31/12/2017 to `.30,787 crore as on 31/12/2018, registering Y-o-Y growth of 0.55%.
 CASA grew from `.6,482 crore to `.7,036 crore, registering Y-o-Y growth of 8.56%.
 CASA as a percentage to total deposits stood higher at 22.85 from 21.17% a year ago.

 Net Interest Margin (NIM) of the bank stood at 1.65% for the quarter Q3 FY19 as against 1.74% for Q2 FY 19 as of 30/09/2017.
 Operating loss of the bank stood at Rs.25.10 crore for the quarter ended 31/12/2018 as against Operating Profit Rs.27.57 crore for the quarter ended 30/09/2018 and Operating Profit of Rs.46.12 crore for the quarter ended 31/12/2017
 Cost to Income ratio stood to 112.56% as against 87.59% in Q2 FY 19 (sequentially).
 Net Loss for the Bank was `.373.49 crore for the quarter ended 31/12/2018 as against net loss of `.132.31 crore for the quarter ended 30/09/2018.
 Bank continues to diversify its business and for the quarter end 31/12/2018, the corporate book is at 33% against 53% as on 31/12/2017

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 7.57% as at 31/12/2018 as against 9.67% as at 30/09/2018.


The Gross NPA stood 13.95% as on 31/12/2018, up from 5.66% as on 31/12/17. Sequentially, it has gone up from 12.31% as on 30/09/2018. Net NPA stood at 7.64%, up from 4.27% in the corresponding period of the previous year, and sequentially up from the 6.88% as on 30/09/2018. The provision coverage ratio is at 55.93 % (46.75% as on 31/12/2017 and 55.39% as on 30/09/2018).

New Inititatives
1. CASA- new initiatives
 Lakshmi Dynamic Current Accounts has been well received in the market, and has contributed a CASA book of `. 147 Crores as of Dec’18 to the bank o This will be one of the core propositions we will drive in the nearterm future, with updates in line with market expectations

 “Just a dollar” Account launched to facilitate payments of any forex value for 1 USD. This is targeted on the midscale MSME player.
2. Average balances in New to Bank Current Accounts acquired up to Q3FY18 was `. 66,751 up from `.50,709 as of Q3FY18, a y-o-y growth of 32% . Similarly, average balances in New to Bank Savings Accounts acquired up to Q3FY18 was `. 27,247 up from `. 15,045 as of Q3FY18, a y-o-y growth of 81%
3. Centralisation of Back end process through CBO: we have almost completed centralisation of data repository and monitoring operations of MSME business. This provides high visibility over the operations and helps the bank in prudent Risk control
4. As per data availed from NPCI, Bank has achieved more than 60% of Debit card penetration for all our transactions of savings account. It pegs the Bank amongst one of the highest in South India Banks

5. Focus on technology continues: – The Banks new age core banking and profit monitoring platform are up for deployment by next quarter end. This shall provide very accurate KRA monitoring and data management prowess to the Bank
6. Other liabilities initiatives
 New branches opened: 7 branches, Six in Tamil Nadu and one in Andhra Pradesh
 Completely revamped process for acquisition of Salary relationships with better product propositions to salary account customers, with 1 revamped and 2 newly launched Salary Account variants
 Also, as part of overall strategy, will collaborate with Salary Corporates with co-branded offerings

7. Over the quarter, the Bank has reduced exposure to NBFCs, Real Estate and Infrastructure sectors by Rs 800 crores.Exposure to the NBFC sector is today at `. 2136 crores, which is 8.16% of the lending book. There is no NPA in this sector with us.
8. The Bank’s exposure to the real estate sector is `.3742.00 crores, which is 14.3 % of the lending book of the Bank. Out of this exposure, 1832 crores is to developers. Stress – `. 245 crores. The exposure to LAPs is Rs 959 crores. We have not noticed any particular stress in that book.
9. LVB executed its first transaction through the TReDS system. This provides access to an institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers will be known as Trade Receivables Discounting System (TReDS).
10. The Bank’s treasury has also started trading in Rupee based Interest Rate Swaps (OIS) through its derivatives desk. This provides additionality to the trading business of bank.


As on 31/12/2018, Bank has 569 branches, 5 Extension Counters, 1046 ATMs in 18 states and 1 union territory, the Bank offers various bouquets of products and services. The Bank is committed to build a sustainable business over the long term and upholding high standards of customer service – Life Smiles Where LVB Serves. Tamil Nadu continues to be the dominant contributor of business for the Bank.

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