Transcript Slide 1

THE LAKSHMI VILAS BANK LTD.
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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)
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CONSISTENT PERFORMANCE 2010-11
QUARTER ENDED (FY 2010-11)
DESCRIPTION
NET PROFIT
GROSS NPA ( ` in Crs)
GROSS NPA (%)
NET NPA (` in Crs)
NET NPA (%)
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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%
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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 %
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26.84%
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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)
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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 (%)
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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)
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YOY (%)
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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%
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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
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YOY (%)
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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%
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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.
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BASEL II - 13.19 %
TIER I
- 10.78 %
TIER II
- 2.41 %
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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)
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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
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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%
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