Financial Results for the Quarter and Year Ended 31st March 2016

Major Performance Highlights

• Net Profit up by 36.25%, Y-o-Y.

• Operating Profit increased by 13.82%, Y-o-Y.

• Business expanded by 17.60% over previous year.

• Net Interest Income (NII) recorded 22.53%, Y-o-Y.

• ROA & ROE stood at 0.70% and 11.74%, respectively.

Lakshmi Vilas Bank (LVB), a private sector Bank in its transformational journey, has recorded the following performance during the financial year 2015-16 (FY16) despite the challenging environment.

Year - on - Year Highlights:

- Net profit for the year increased by 36.25%, from `132.29 Crs for FY15 to `180.24 Crs for FY16.

- Operating Profit for the year up by 13.82% (from `357.69 Crs to `407.12 Crs).

- Net Interest Income (NII) recorded year on year growth of `118.66 Crs (22.53%) from `526.65 Crs to `645.31 Crs, Y-o-Y.

- Net Interest Margin (NIM) of the bank stood at 2.78% as of 31^st March 2016.

- Gross NPA declined from 2.75%  to 1.97% and Net NPA from 1.85% to 1.18%.

- Total Deposits rose from `21964.21 Crs in FY15 to `25430.96 Crs, registering Y-o-Y growth of 15.78%.

- CASA grown from `3661.84 Crs to `4415.51 Crs, registering Y-o-Y growth of 20.58%.

- Gross Advances increased from `16512.84 Crs to `19818.93 Crs registering Y-O-Y growth of  20.02%.

- Total Business of the bank reached `45249.89 Crs, showing an increase of 17.60%, Y-o-Y.

Q4 Highlights:

• Net Profit up by 22.46%, from `40.07 Crs to `49.07 Crs, Y-o-Y.

• Operating Profit up by 4.91% from `95.48 Crs to `100.17 Crs, Y-o-Y.

• Total income grown by 14.29%, from `663.97 crores to `758.84 crores.

• Interest income of the bank increased by 16.71% from `570.94 Crs to `666.33 Crs, Y-o-Y.

• Return on Equity (ROE) for Q4 stood at 12.27% as against 10.84%, during the same period of previous year.

Business

Total deposits as of 31.03.2016 stood at `25430.96 crores, registered a growth of 15.78% over 31.03.2015. CASA deposits has grown significantly by 20.58% (`753.67 Crs) over the previous year and stood at `4415.51 Crs. Term deposits stood at `19849.08 crores, an increase of 15.69% over the previous year resulting in CASA proportion to total deposits of 17.36% as on 31.03.2016. Gross Advances as of 31.03.2016 were `19818.93 crores, registered an increase of 20.02% over  previous year.

Operating Profit & Net Profit

Net Profit of the bank grew by 36.25% YOY from `132.29 Crs in FY15 to `180.24 Crs in FY16. Operating Profit grew 13.82% from `357.69 Crs in FY15 to `407.12 Crs in FY16. Other income of the bank increased by 7.22% from `284.03 Crs to `304.53 Crs, Y-o-Y.

DIVIDEND

The Board of Directors recommended a dividend of 30% for the year ended March 31, 2016

Asset Quality

The bank continued to improve its Asset Quality in FY16. Gross NPA as of 31^st March 2016 de-grew by 13.94% and stood at `391.25 Crs as against  `454.62 Crs as on 31^st March 2015. Similarly Net NPA de-grew by 23.42% and stood at `231.64 Cr as on 31^st March 2016. Gross NPA as a percentage of Gross Advances reduced by 78 bps to 1.97% as on 31^st March 2016. Net NPA as a percentage to Net Advances stood at 1.18% as against 1.85% in FY15. The Provision Coverage Ratio stood at a better position 68.55% (Previous year – 60.84%).

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 10.67% as at March 31, 2016.

Network

During the financial year 2015-16, the Bank had opened 60 new branches and installed 90 ATM’s and as of 31^st March 2016, the bank has a network of 460 branches (including 1 satellite branch), 7 extension counters and  910 ATMs, spread across the country. The bank continues to invest in expansion of its network by opening more branches and installing more ATMs.

The Board of Directors of The Lakshmi Vilas Bank Limited approved the financial results for the quarter ended March 31, 2016 and the audited results for the year ended March 31, 2016 at their meeting held in Chennai on Wednesday, April 27, 2016.

(P.Mukherjee)

Managing Director & CEO