Lakshmi Vilas Bank announced a dip in their net profits for the last quarter of 2012. The bank's bottomline read Rs. 24.96 crore, 9% less than the year before. But the bank's income grew by 32 % during the same period.
On the bank's performance, Mr. P R Somasundaram, CEO LVB said, "It has also been a year of consistent growth amidst challenges. While there is huge satisfaction, there is some disappointment as well. I am happy because few fundamentals have been addressed, but there is a setback on account of some temporary NPAs."
The Rs. 250 crore tier II capital which the bank raised brought its net profit down because to the high costs associated with it. But the bank showed a 6% increase in its annual growth in net profit, which was Rs. 107.02 crore.
The bank's net income grew by 40% to Rs. 1677.18 crore up from Rs. 1201.85 crore year before. The high costs and increased term deposits caused a dip in NIM, which decreased from 3.75% to 2.91%. There was also an increase in NPAs as a ratio of total advances, which increased from 1.93% to 2.98%.