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Lakshmi Vilas Bank Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1 The above financial results have been reviewed by the Audit Committee of the Board in their meeting held on 4th February 2019 and approved by the Board of Directors in their meeting held on 4th February 2019. The same have been subjected to Limited Review by the Statutory Auditors of the Bank.

2 The working results for the quarter ended 31st December 2018 have been arrived at after considering provision for Non Performing Assets and depreciation on Investments. Provision for Employee Benefits, Income Tax and Other usual and necessary provisions are on an estimated and proportionate basis and are subject to adjustment at the year end.

3 There has been no change in the accounting policies in the preparation of interim financial results to those followed in the annual financial statements for the year ended March 31, 2018.

4 The bank had spread the provisioning for MTM losses on the investments held in AFS and HFT categories for the quarter ended 31.03.2018 and 30.06.2018 equally over four quarters as permitted by RBI vide circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 and DBR.No.BP.BC.113/21.04.048/2017-18 dated June 15, 2018 respectively. Accordingly, Bank has provided Rs.47.02 crore for depreciation of the investment portfolio for the quarter ended December 2018. The balance amounting to Rs.14.25 crore will be provided in the ensuing quarter.

5 In the matter of suit filed against the bank by M/s Religare Finvest Ltd., for adjustment of their deposits to the dues of M/s.RHC Holding Pvt.Ltd & M/s.Ranchem Pvt Ltd., as reported in the earlier quarters, it is being defended appropriately by the Bank and the matter still remains sub-judice.

6 RBI circular DBR.No.BP.BC.108/21.04.048/2017-18 permitted banks to continue the exposures to MSME borrowers to be classified as standard assets where the dues between September 1, 2017 and December 31, 2018 are paid not later than 180 days from their respective original due dates. Accordingly, the bank has retained advance of Rs.88.44 crore as standard as at December 31, 2018. In accordance with the provisions of the circular, the bank had not recognised the unrealised interest income of Rs.3.04 crore.

7 The provision coverage ratio as at 31st December 2018 stood at 55.93%.

8 In accordance with RBI Circular no. DBOD.BP.BC.1/21.06.201/2015-16 dt:01.07.2015 and DBR.BP.BC.80/21.06.201/ 2014-15 dt:31.03.2015, Pillar 3 disclosures including leverage ratios and liquidity coverage ratios under Basel III framework is being made available on bank's website at http://www.lvbank.com/basel_ii.aspx and the disclosures have not been subjected to audit or limited review by the statutory auditors of the bank.

9 During the quarter ended 31st December 2018, the Bank had allotted 5,339 shares pursuant to the exercise of employees' stock option.

10 Status of Investor Complaints for the quarter ended 31st December 2018:

-Complaints pending at the beginning of the Quarter : Nil

-Complaints received during the Quarter : Nil

-Complaints disposed during the Quarter: Nil

-Complaints unresolved at the end of the Quarter: Nil

11 The figures of the previous periods/year have been regrouped/reclassified, wherever necessary to conform to current period/ year classification.