The private sector lender, Lakshmi Vilas Bank, may end the current fiscal with gross non-performing assets (NPAs) standing at less than 3 percent, as compared to 4.5 percent where it stood at the end of the last quarter. The reduction in its NPAs is said to be a result of better recoveries.
On the matter, the bank's Managing Director and interim CEO K S R Anjaneyulu said, "We will be at 3 per cent by March as compared to 4.5 per cent levels we reported in September...we expect recoveries in 2-3 accounts during this quarter."
Anjaneyulu did not mention the amount expected to be recovered but said that the bank is certain about making recovery from 3 of its clients from diverse sectors following communication from them regarding their willingness to repay.
The bank is yet to announce its financials for the Quarter ending December, 2012. This fiscal, it also plans to expand across the country. Talking about the bank's expansion plans, he said, "We have received RBI nod to add 71 branches to the existing 291 and will be inaugurating those by end May and then reapplying for more."
In addition to its expansion drive, the bank is also planning to increase its Current Account and Savings Accounts deposits (CASA), which is currently standing at 14 percent, among the lowest CASA deposits in the banking sector.
On this, he said, "We see the CASA growing to 17 per cent by March 2013 as all the 28 tier-I branches will be opened by then. In June quarter, as all our branches open, we target it to be at 20 per cent and 25 per cent by March 2014."