Lakshmi Vilas Bank made sure of more quality stresses on the assets
A fresh Rs. 400 Crore stress on loan assets is going to anticipate for the next few quarters by the private lender Lakshmi Vilas Bank, especially on small-medium enterprise (SME). According to the Chief Executive Parthasarthi Mukherjee, the 35% of the loans by the Lakshmi Vilas Banks are by these SME. She also claimed that these SMEs are facing problems with GST. In September, due to the slippage of Rs. 237 Crore came from these small accounts and the non-performing assets ratio had slipped from 12.31% to 10.73% sequentially.
The bank has collected Rs 370 Crore so far and looking to collect Rs 500-700 Crores in the next quarters. The bank has also claimed that the bank has lost up to Rs 132 Crore in the fourth consecutive quarter due to the deterioration of the asset quality and slow business. The Rs 10.5 Crore was the only profit made by the bank.
The advancements of merely 3.8% can be seen in the business because of the lack of investment. But, the banks have hidden the investments in the real estate and infrastructure which grew from Rs 5000 Crore to Rs 6,800 Crore earlier.
The Fundraising of at least Rs. 2000 Crores is planned by the bank till the year-end. The bank has chosen Blackstone Group, Bain Capital, TPG Capital Management and two more companies for the fundraising.
The capital adequacy ratio of the bank fell to 9.67%, a share above the regulatory bare minimum of 9%, at the end of September from 10.57% a year ago.