Lakshmi Vilas Bank reports net loss in Q2 2018-19 due to 'high provisioning'

Private sector Lakshmi Vilas Bank has recorded a net loss on its second quarter ending September 30, 2018, at Rs 132.30 crore due to "higher provisioning."

The Tamil Nadu based bank had recorded net profits RPT profits at Rs 10.50 crore during the corresponding quarter of previous year.

Briefing reporters on the financial performance of the bank here Wednesday, its managing director and CEO, Parthasarathy Mukherjee said the bank had reported a net loss on account of "higher provisioning".

"We are now in the midst of capital raising. Once we raise the capital we will back to normal (business). 2019-20 will be a good year for us," Mukherjee said. To a query, he said the bank was looking at raising the capital Rs 2,000 crore in 'multiple tranches' and expecting to complete the process by the end of the current financial year.

For the half year ending September 30, 2018, a net loss of the bank stood at Rs 256.17 crore as against a net profits RPT profits of Rs 76.61 crore registered year ago period.

Total income of the bank for the July-September quarter dipped to Rs 800.50 crore from Rs 902.75 crore registered during the year-ago period.

For the half year ending March 31, 2018, the total income of the bank declined to Rs 1,588.00 crore from Rs 1,830.00 crore recorded during the same period of the previous year.

Asked whether the bank was looking at posting profits in 2019-20, Mukherjee exuded confidence saying, "definitely. Once we raise the capital we will be looking for posting profits. We have renewed our focus on retail and micro, small and medium enterprise (sectors)."