Published on 20/11/2020 1:21:46 PM | Source: Angel Broking Ltd

Quote on Lakshmi Vilas Bank By Jaikishan Parmar, Angel Broking

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Below are Quote on Lakshmi Vilas Bank By Mr. Jaikishan Parmar- Sr. Equity Research Analyst, Angel Broking Ltd

“Lakshmi Vilas Bank (LVB) continue to hit the lower circuit and would correct further, investors who bought in hope of revival, on an expectation of healthy gain got stuck. LVB networth almost got eroded due to escalated provision and weak business. In this merger shareholder of LVB will not get any benefit, The entire capital of the bank will be written off post the merger with DBS Bank India Ltd (DBIL). compression in loan book impacted NII and other income which weakened pre-provision profit and continues deterioration of asset quality issue kept provision cost high for the last several quarters and these combinations led to losses. consequently, net worth got eroded and CRAR went way below regulatory requirement. We believe a merger would be beneficial for DBS bank as it would be able to grow business in the south that has business and individual route to Singapore. As of Q1FY21 DBS CRAR stands at 15.99% and GNPA and NNPA at 2.7% and 0.5%, respectively. DBS is ready to put fresh capital to initiate new business.”


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