Lakshmi Vilas Bank eyes Rs 10000cr biz

Lakshmi Vilas Bank Limited is targeting a total business of Rs 10,000 crore during this fiscal year. The 100-year-old bank, headquartered at Karur, recorded 25.38 per cent growth in its overall performance.

Addressing the media here, R M Nayak, chairman and CEO of the bank, said the bank had garnered a total business of Rs 7,289.20 crore in the beginning of the fiscal, compared with Rs 5,813.64 crore in the previous year.

With the addition of new branches and deployment of networking and other technologies, the bank was hopeful of achieving the target.

The bank will open 20 new branches before the end of this fiscal, in addition to its 332 branches across 10 states and one union territory. It is planning to set up five branches in the South, including one each at Tirupur in Tamil Nadu, at Bheemavaram and Khammam in Andhra Pradesh, and in Bangalore.

During the current year, the bank is targeting a growth of 30-35 per cent, Nayak added.

"In order to augment the capital to meet the expanding business needs, the bank has issued tier II subordinated bonds to the extent of Rs 30 crore. It has already filed documents with the Securities and Exchange Board of India (Sebi) for the rights issue of shares in the ratio of 1:1 with a premium of Rs 40 per equity share of Rs10," he said.

The networth of the bank is expected to cross Rs 450 crore and the capital adequacy ratio will be above 11 per cent as against the minimum requirement of 9 per cent, he added.

The bank garnered a profit of Rs 12.75 crore in the first quarter of this fiscal, as against Rs 4.30 crore in the corresponding quarter of the previous year.