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THE LAKSHMI VILAS BANK LTD. www.lvbank.com Investor Meet Page 1 PERFORMANCE HIGHLIGHTS 2010-11 1. NET PROFIT CROSSED `100 CRORES, FIRST TIME IN THE HISTORY OF THE BANK. 2. OPERATING PROFIT `273.86 CRORES UP BY 65% ON YOY BASIS (Prev. Year `166.21 crores) 3. GROSS NPA LESS THAN 2%, STANDS AT 1.93% AS ON 31.03.2011 4. NET NPA LESS THAN 1%, STANDS AT 0.90% AS ON 31.03.2011 5. PROVISION COVERAGE RATIO IS 77.17%, WELL ABOVE THE RBI STIPULATION OF MINIMUM 70%. 6. NET INTEREST MARGIN (NIM) CONTINUES TO BE ROBUST AT 3.75% 7. NET INTEREST INCOME (NII) `364.99 CRORES UP BY 46.50% ON YOY BASIS (Prev. Year `249.13 crores) www.lvbank.com Investor Meet Page 2 CONSISTENT PERFORMANCE 2010-11 QUARTER ENDED (FY 2010-11) DESCRIPTION NET PROFIT GROSS NPA ( ` in Crs) GROSS NPA (%) NET NPA (` in Crs) NET NPA (%) www.lvbank.com 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 23.39 24.68 25.69 27.38 273.61 263.63 206.31 157.79 4.27% 4.08% 2.98% 1.93% 210.19 181.27 139.67 72.87 3.31% 2.85% 2.04% 0.90% Investor Meet Page 3 DEPOSITS (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 YOY (%) CORE DEPOSITS 10701.03 8808.99 21.48% BANK DEPOSITS 448.48 266.39 68.35% 11149.51 9075.38 22.85% 9376.98 8235.40 13.86% INTEREST PAID ON DEPOSITS 666.19 646.41 3.06% COST OF DEPOSITS 7.10% 7.85% 2097.45 1653.57 18.81% 18.22% TOTAL AVERAGE DEPOSITS (FORM A) CASA BALANCE CASA % www.lvbank.com 26.84% Investor Meet Page 4 ADVANCES (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 YOY (%) GROSS ADVANCES 8187.67 6350.40 28.93% NET ADVANCES 8094.42 6277.50 28.94% AVG. GROSS ADVANCES 6661.84 5709.31 16.68% INTEREST RECEIVED ON ADVANCES 833.88 718.60 14.98% YEILD ON ADVANCES (%) 12.52% 12.59% CREDIT – DEPOSIT RATIO (%) 73.44% 69.97% (FORM A) www.lvbank.com Investor Meet Page 5 INVESTMENTS (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 YOY (%) GROSS INVESTMENTS 3544.05 3009.81 17.75% SLR SECURITIES 2990.61 2600.79 14.99% 553.44 409.02 35.31% 25.20 26.59 -5.23% 3518.85 2983.22 17.95% 229.75 182.81 25.68% 7.55% 7.16% 31.79% 33.16% NON SLR SECURITIES Less: DEPRECIATION NET INVESTMENTS INTEREST INCOME ON INVESTMENTS AVG. INTEREST YEILD ON INVESTMENTS(%) INVESTMENT-DEPOSIT RATIO (%) www.lvbank.com Investor Meet Page 6 INCOME (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 1064.84 909.32 17.10% a. INTEREST / DISCOUNT ON ADVANCES / BILLS 833.88 720.25 15.78% b. INCOME ON INVESTMENTS 229.75 182.81 25.68% 1.20 6.26 -80.83% 137.02 103.56 32.31% 1201.85 1012.88 18.66% 1. INTEREST EARNED (a+b+c) c. INTEREST ON BALANCES WITH RBI & OTHER INTER-BANK FUNDS 2. OTHER INCOME TOTAL INCOME (1+2) www.lvbank.com YOY (%) Investor Meet Page 7 EXPENDITURE (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 YOY (%) INTEREST EXPENDITURE 699.84 660.19 6.05% STAFF EXPENDITURE 116.30 92.47 25.77% OPERATING EXPENDITURE 111.85 94.01 18.98% TOTAL 927.99 846.67 9.60% www.lvbank.com Investor Meet Page 8 OTHER INCOME (` in crores) DESCRIPTION VARIATION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 71.85 54.56 31.69% PROFIT ON SALE OF INVESTMENTS 8.42 12.24 -31.20% PROFIT ON SALE OF FIXED ASSETS 0.10 0.09 11.11% 10.97 9.08 20.81% 0.60 1.02 -41.18% 45.08 26.57 69.63% 137.02 103.56 32.31% COMMISSION & EXCHANGE EXCHANGE PROFIT DIVIDEND OTHERS TOTAL www.lvbank.com YOY (%) Investor Meet Page 9 NET PROFIT (` in crores) DESCRIPTION AS ON 31.03.2011 INTEREST EARNED VARIATION YEAR ENDED AS ON 31.03.2010 YOY (%) 1064.84 909.32 17.10% OTHER INCOME 137.02 103.56 32.30% 1. TOTAL INCOME 1201.85 1012.88 18.66% INTEREST EXPENDED 699.84 660.19 6.00% OPERATING EXPENDITURE 228.15 186.48 22.35% 2. TOTAL EXPENDITURE 927.99 846.67 9.60% OPERATING PROFIT (1 – 2) 273.86 166.21 64.77% PROVISIONS (INCLUSIVE OF TAX) 172.72 135.54 27.43% NET PROFIT 101.14 30.67 229.77% www.lvbank.com Investor Meet Page 10 CAPITAL FUNDS • CAPITAL TO RISK WEIGHTED ASSETS - • BANK CAN ISSUE UPTO 40% ADDITIONAL EQUITY AS ALREADY AUTHORISED BY SHAREHOLDERS TO IMPROVE CAPITAL ADEQUACY RATIO IN LINE WITH THE PROJECTED BUSINESS LEVEL. OF COURSE, OTHER OPTIONS LIKE PREFERENTIAL ISSUE OR RIGHTS CAN ALSO BE DONE WITH SHARE HOLDERS’ APPROVAL. • BANK ALSO HAS ADEQUATE HEADROOM TO RAISE FUNDS UNDER TIER II. www.lvbank.com BASEL II - 13.19 % TIER I - 10.78 % TIER II - 2.41 % Investor Meet Page 11 ANALYTICAL RATIOS YEAR ENDED DESCRIPTION RETURN ON EQUITY (%) AS ON 31.03.2011 AS ON 31.03.2010 12.81% 5.14% 0.92% 0.33% COST TO INCOME RATIO (%) 45.45% 52.87% OVERHEAD EFFICIAENCY RATIO (%) 60.06% 55.49% YEILD ON FUNDS (%) 9.71% 9.71% COST OF FUNDS (%) 6.38% 7.05% INTEREST SPREAD (%) 3.33% 2.66% RETURN ON ASSETS (%) (AS A % OF AVG. ASSETS (ANNUALISED) www.lvbank.com Investor Meet Page 12 NON PERFORMING ASSETS (` in crores) VARIATION DESCRIPTION YEAR ENDED AS ON 31.03.2011 GROSS NPA AS ON 31.03.2010 YOY (%) 157.79 325.17 -51.47% PROVISIONS HELD FOR NPA 34.28 60.73 -30.71% NET NPA 72.87 257.78 -71.73% GROSS NPA (%) 1.93% 5.12% NET NPA (%) 0.90% 4.11% 77.17% 49.67% PROVISION COVERAGE RATIO (%) RECOVERY FROM WRITTEN OFF ACCOUNTS AMOUNTED TO ` 11.16 CRORES www.lvbank.com Investor Meet Page 13 MOVEMENT OF NPA (GROSS) (` in crores) VARIATION DESCRIPTION YEAR ENDED AS ON 31.03.2011 AS ON 31.03.2010 YOY (%) OPENING BALANCE 325.17 144.05 125.73% ADDITIONS DURING THE YEAR 137.53 389.30 -64.67% REDUCTIONS DURING THE YEAR 304.92 208.18 46.47% CLOSING BALANCE 157.79 325.17 -51.47% www.lvbank.com Investor Meet Page 14 www.lvbank.com Investor Meet Page 15