Analyst Meet / AGM - Analyst Meet

02-May-2017, 09:28
Lakshmi Vilas Bank conducted an analyst meet on 27 April 2017 to discuss the financial results for the quarter ended March 2017 and prospects of the Bank. Parthasarathi Mukherjee, MD&CEO of the bank addressed the meet:

Highlights:

• The bank has posted healthy 21% loan growth end March 2017 over March 2016 supported by segments such as corporate and mid-corporate segments. The corporate loan segment accounted for 50.8% of overall loan book, agriculture 17.8%, SME 26% and retail 5.4% end March 2017. The bank would continue focus on growing its retail and SME loan book.

• Housing loans contributes major share in retails loan, while bank is planning to foray into auto and personal loan segments in FY2018. The bank has limited exposure to LAP portfolio with LTVs capped at 65-75% for the segment.

• The bank has recorded robust 28% growth in deposits, driven by 32% surge in CASA deposits. The CASA deposit ratio of the bank has improved to 19.1% end March 2017 from 17.4% a year ago. The bank has successfully retained about 50% of its demonetization cash deposits inflows.

• The bank proposes to improve CASA ratio to 23% by 2020 and further higher to 25% by 2023 and 35% by 2026.

• The cost-income ratio of the bank stood at 50.7% in FY17, while bank aims to maintain cost-to-income ratio in the range of 50-53% in the near term and improve towards 45% levels in long term.

• The credit cost of the bank stood at 117 bps in FY2017.

• The bank witnessed fresh slippages of Rs 270 crore, while the recoveries and upgrades stood at Rs 180 crore in Q4FY17. As per the bank, the three accounts were major contributors to fresh slippages from edible oil sector with the exposure of Rs 95 crore, timber merchant Rs 20 crore, and textiles Rs 20 crore.

• The bank has conducted sale of assets amounting to Rs 122 crore to Asset Reconstruction Companies (ARCs) in Q4FY2017. The net book value of these accounts was Rs 153 crore.

• The securities receipts on banks book stood at Rs 270 crore end March 2017.

• The restructured loan book of the bank stood at Rs 496 crore end March 2017. The bank has upgraded about Rs 120 crore of the restructured loans to standard category in Q4FY2017.

• The portfolio under Strategic Debt Restructuring (SDR) scheme stood at Rs 0.28 crore, S4A Rs 25 crore and 5/25 refinancing at Rs 160 crore end March 2017.

• The SMA-2 category loan book of the bank stood at Rs 600-700 crore end March 2017.

• The bank expects further capital raising in FY18.

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