LVB net soars over 570 pc at Rs 22.47 cr; 25 pc dividend recommended

New Delhi, May 18 (UNI) Lakshmi Vilas Bank Ltd (LVB) today reported a 570 per cent jump in its net profit at Rs 22.47 crore for the year ended March 31, 2006 as against Rs 3.34 crore in the previous year, and recommended a dividend of 25 per cent.

The achievement has been attributed to excellent last quarter performance in as much as net profit in the last quarter which spurted by over 172 per cent from Rs 8.23 crore (cumulative for 3 Qrs) to Rs 22.47 crore.

The total business volume also grew by 25.38 per cent to Rs 7,289.20 crore during the year as against Rs 5,813.64 crore in the previous year.

Deposit level of LVB rose from Rs 3,495.92 crore to Rs 4,336.38 crore and credit portfolio during the year expanded to Rs 2,952.82 crore from Rs 2,317.71 crore an year ago.

Announcing the performance of the bank, LVB Chairman and CEO R M Nayak informed reporters that the net non-performing assets (NPA) of the bank witnessed a marked improvement and stood at Rs 55.59 crore on March 31, 2006 compared to Rs 115.05 crore last year and the Capital Adequacy Ratio (CAR) stood at 10.8 per cent.

''Besides, the Board of Directors have recommended a dividend of 25 per cent,'' he said.

Mr Nayak said the bank has set a target to achieve a business of over Rs 10,000 crore during the current financial year and deposits to cross Rs 6,000 crore.

The bank also plans to launch Core Banking System at five pilot branches before August-end and cover 150 branches in about a year's time.

The bank today has a national presence serving over 1.3 million customers through its 227 branches and 10 Extension Counters spread across 10 states and one Union Territory.

LVB plans to open 21 more branches during the current year and of this four will be operational before June-end, Mr Nayak said.

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