Lakshmi Vilas Bank Limited = FIRST QTR = Q1 FY 2011 RESULTS = IMPROVED = FUTURE PROMISING

Lakshmi Vilas Bank Limited

NSE Symbol   LAKSHVILAS

Q1 FY 2011 RESULTS

Lakshmi Vilas Bank has reported improved results for the first quarter of FY2011.

Interest on Advances is Rs.193.47 cr – up by 4.4% from previous qtr of Q4 FY10 (Rs.185.39 Cr) – up by 13.1 % from corresponding qtr of Q1 FY10 (Rs.171.03 Cr) and proportionately ( q1 FY11  x 4) up by 7.7% from FY2010 (Rs.718.60 cr).

Total Income is Rs.274.99 cr – up by 2.2% from previous qtr (Rs.269.01 Cr) – up by 16.8% from corresponding qtr (Rs.235.44 Cr) – and up proportionately by 8.6% from FU2-1- (Rs.1012.88 Cr).

Interest Expended is Rs.163.83 cr – up by 0.8% from previous qtr (Rs.162.51 Cr)  - up by 1.5% from corresponding qtr (Rs.161.39 Cr) –  and proportionately down by 0.7% from FY2010 (Rs.660.19 Cr).

Operating Profit is Rs.53.73 cr – down by 1.8% from previous qtr (Rs.54.74 Cr) – but up handsomely by 65.6% from corresponding qtr (Rs.32.45 Cr) – and up proportionately by 29.3% from FY2010 (Rs.166.21 Cr).

Provisions are Rs.18.75 cr – down by 81.5% from previous qtr (Rs.101.15cr) – but up from corresponding qtr (Rs.-1.48 Cr)  and down proportionately compared to FY2010.(Rs.134.99 Cr) by 44.5%.

Net Profit is Rs.23.39 Cr – up considerably from the loss of 20.77 cr in previous qtr – and up by 3.2% compared to corresponding qtr (Rs.22.66 Cr) – and up proportionately by 205% compared to FY2010(Rs.30.67 Cr).

Capital Adequacy Ratio is healthy at 13.83 though slightly down from 14.21 in previous qtr – but risen smartly from 9.93 in corresponding qtr.

Paid-up Equity      had increased to Rs.97.51 cr after the last corresponding qtr from Rs.48.78 Cr.

Basic EPS is reasonable at Rs.2.4 on the enhanced capital, compared to Rs.-2.13 on the enhanced capital in previous qtr,     Rs.4.65 on old capital in Q1 FY10 – and Rs.4.95 on the increased capital in FY2010.  

% of Gross/Net NPA is quite High at 3.31 though down from previous qtr’s 4.11 – but a huge up compared to corresponding qtr’s 1.32. This needs to come down.

Return on Assets is LOW at 0.9 – though higher compared to previous qtr’s -0.82  but much lower compared to corresponding qtr’s 1.06. Last year it was very low at a mere 0.33, since calculated on higher capital acquired at year end.

Public Holding is 90.27%. So, promoter’s holding is considered LOW.

Lakshmi Vilas Bank is quoting at Rs.108.At current rate of EPS, the annual EPS for FY11 may be Rs.10. Hence, PE ratio is around 10.8. LV Bank is growing fast and has solid plans going further. While asset quality is a matter of some concern, its future seems to be bright.

RESULTS IN FIGURES :

LAKSHMIVILASBANK	Jun-10	Mar-10	Dif%1	Jun-09	Dif%2	FY10	Dif%3
Interest on Advances	19346.5	18538.56	4.4	17102.78	13.1	71860.1	7.7
Income on Investments	5280.45	5428.05	-2.7	3564.81	48.1	18281.4	15.5
Income on RBIBalances	42.52	7.09	499.7	270.04	-84.3	626.34	-72.8
Others	137.7	47.82	188	35.54	287.5	164.55	234.7
Interest Earned	24807.19	24021.52	3.3	20973.17	18.3	90932.39	9.1
Other Income	2691.84	2879.53	-6.5	2571.14	4.7	10355.7	4
Total Income	27499.03	26901.05	2.2	23544.31	16.8	101288.1	8.6
Interest Expended	16383.1	16251.74	0.8	16139.1	1.5	66019.38	-0.7
Employees Cost	3406.73	2439.82	39.6	2170.22	57	9246.78	47.4
Other Optg Expenses	2335.94	2735.89	-14.6	1990.09	17.4	9401.01	-0.6
Operating Expenses	5742.67	5175.71	11	4160.31	38	18647.79	23.2
Operating Profit	5373.23	5473.6	-1.8	3244.9	65.6	16620.92	29.3
Provisions	1874.59	10115.39	-81.5	-148.38	-1363	13499.12	-44.5
P B T	3498.64	-4641.79		3393.28	3.1	3121.8	348.3
Tax Expense	1160	-2565		1127	2.9	55	8336.4
P A T	2338.64	-2076.79		2266.28	3.2	3066.8	205
Net Profit	2338.64	-2076.79		2266.28	3.2	3066.8	205
Face Value	10	10	0	10	0	10
Paid-up Equity	9750.88	9750.88	0	4877.95	99.9	9750.88
Reserves	-	64148.86		-		64148.86
Dividend%	-	6		-		6
Capital Adeq Ratio	13.83	14.21	-2.7	9.93	39.3	14.21
Basic EPS	2.4	-2.13	-213	4.65	-48.4	4.95	93.9
% of Gross/Net NPA	3.31	4.11	-19.5	1.32	150.8	4.11	222.1
Return on Assets	0.9	-0.82	-210	1.06	-15.1	0.33	990.9
Public Holding (%)	90.27	90.26	0	92.76	-2.7	90.26

ANNOUNCEMENTS

TO THE EXCHANGE

05-08-2010        Lakshmi Vilas Bank Limited has informed the Exchange that the Board at its meeting held on May 31, 2010 recommended a dividend of 6% (Rs. 0.60 paise) on the equity share capital of the Bank for the year 2009-2010. Further, at the Annual General Meeting held on August 04, 2010, the members have declared the above said 6% dividend.    -

01-07-2010        Lakshmi Vilas Bank Limited has informed the Exchange that according to the Reserve Bank of India directive, Banks have to follow the new base rate system - which replaces the benchmark prime lending rate from July 01, 2010. In line with the above, the bank has set Base rate at 8.75%.

25-06-2010        Lakshmi Vilas Bank Limited has informed the Exchange that the Board of Directors at their meeting held on June 24, 2010 decided to seek the shareholders approval for: (1) Issue of equity shares up to 40% of the present issued capital of the bank by way of QIP / GDR / ADR / Follow on Public Issue at the best possible price in accordance with the SEBI guidelines and necessary approval; (2) Issue of equity stock options up to 50,00,000 to the eligible employees / directors under stock option scheme. The Company also informs that the Board of directors have decided to float a subsidiary company for Housing Finance Company with necessary approvals.

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