Lakshmi Vilas Bank shares tank 9 pc after Q2 earnings

Shares of Lakshmi Vilas Bank (LVB) on Monday declined 9 per cent after the company reported widening of its net loss to Rs 397 crore for the second quarter ended September 2020.

Shares of Lakshmi Vilas Bank (LVB) on Monday declined 9 per cent after the company reported widening of its net loss to Rs 397 crore for the second quarter ended September 2020. On both the exchanges - BSE and NSE- the stock tanked 8.97 per cent to Rs 14.20.

Private sector Lakshmi Vilas Bank on Saturday reported widening of its net loss at Rs 397 crore for the second quarter due to rise in bad loans and provisions. The bank had posted a net loss of Rs 357.18 crore in the same quarter a year ago. Sequentially also, the loss widened against Rs 112.28 crore in the June quarter of this fiscal.

Total income during the July-September period of FY 2020-21 fell 26 per cent to Rs 494.58 crore as against Rs 665.33 crore a year ago. Interest income fell to Rs 420.13 crore from Rs 607.33 crore. The income on investment was down at Rs 71.21 crore compared to Rs 146.88 crore, LVB said in a regulatory filing.

The bank's asset quality deteriorated, as the gross non-performing assets (NPAs) moved up to 24.45 per cent of the gross advances by the end of Q2 FY21 as against 21.25 per cent by end of September 2019. Sequentially, it improved from 25.40 per cent at the end of June 2020 quarter..