Reviving with its new management, Private Sector lender Lakshmi Vilas Bank (LVB) has decided to re-invent itself and become more dedicated in lending as well as in the deposit accumulation space.
In this new avatar, the bank is looking forward at revamping its back end operations and technology framework. Apart from this, the lender also has created specific businesses to look at precise verticals.
On the retail lending front, the bank is using a technology to categorize potential customers. They are focusing on business analytics and trying to be more data-driven in their decisions. The bank also has a business analytics group that is devotedly working to help them identify customers who at the moment are paying EMIs to other banks
The bank is also seeing at hiring a specialised agency to assess its risk management framework to safeguard the bad loans, that can be kept under check. At the end of the quarter, the net non-performing assets (NPA) of the bank were 1.87%, compared with 1.01%t in the corresponding quarter a year ago.
Going ahead, the bank also has intentions to strengthen its focus on the retail and small & medium enterprises (SME) segments and reduce its focus on the corporate book. At present, 45% of its total loan book is for corporations. In the near future, the bank management wants this share to be reduced to 25% and the share of retail and SME loans to grow.
The Lakshmi Vilas Bank is also looking at increasing capital within this financial year, as its capital sufficiency ratio was low, at 10.10%, at the end of the previous quarter.
“We have an enabling resolution to raise up to Rs 600 cr but I am looking for some quality investors that will add value to the bank, so it is taking time,” said Parathasarathi Mukherjee, CEO of Lakshmi Vilas Bank.
Lakshmi Vilas Bank Going to Revamp, Boost Lending Vertical
