Commercial banking company Lakshmi Vilas bank released its results for the second quarter of the FY21. The bank reported a net loss of Rs 397 crore against Rs 357 crore for the same quarter last year. While reporting a YoY net loss of Rs 46.8 crores the bank’s Net Interest Income was down by 27.5 percent at Rs 79.5 crore for the quarter.
However, the bank performed well in the Gross NPA that decreased by o.95 percent. The bank reported the Gross NPA at Rs 4,063.3 crore vs Rs 4,142 crores. The Net NPA for the quarter was Rs 946.7 crore which was Rs 351.5 less than that reported in Q2 of FY20. The Net percentage of NPA was decreased by 2.63 percent which reported at 7.01 percent vs 9.64 percent.
On the other hand, the Capital-starved Lakshmi Vilas Bank (LVB) is expected to decide on the proposed merger with Clix Capital and its affiliates on November 7. When its board would meet to declare the September quarter results, “Both parties are keen on a merger, though they differ on valuation.” The Clix team was in hard bargaining and wanted to make full provisions against contingent liability of Rs 720 crore related to transactions involving former Religare promoters Malvinder and Shivinder Singh. The team pointed out that the bank would have to return the money if it loses the case against RFL.
