Chennai, Sep 11 (IANS): Doubling the net profit, logging 20 percent business growth, launching credit card, expanding branch and automatic teller machine (ATM) network, and hiring around 400 persons are among the Lakshmi Vilas Bank's plans this year, said a top official here Thursday.
The bank is talking to Visa Card for the launch of co-branded credit card and will also go after wilful defaulters.
"We are targeting a net profit of around Rs.140 crore this year. Though the overall business is expected to log around 20 percent growth, the profit figure will be higher by focusing on low-cost deposits which would cut out interest outgo, realise non-performing assets (NPA) that were written off, and writing back the reserves," said Rakesh Sharma, managing director and CEO.
The bank closed last fiscal with a net profit of Rs.59.66 crore and a total business of Rs.31,462 crore (deposits Rs.18,572.88 crore, advances Rs.12,889.19 crore).
"Last year, we had provided around Rs.40 crore towards the wage bill. This year that amount will not be there to bring down the profit," added M.Palaniappan, chief financial officer.
According to Sharma, the bank would be deploying Rs.406 crore in the business raised through rights issue recently.
While the bank would look at securitisation of some of its loan book this year, it has been reducing its NPA levels consistently, Sharma said.
From a net NPA level of around Rs.443 crore at the end of last fiscal, the bank's net NPA has gone down to around Rs.423 crore at the end of the first quarter this year.
According to Sharma, the bank is trying to increase its non-interest income by selling more insurance policies of Life Insurance Corporation (LIC) and Bajaj Allianz General Insurance.
Speaking of credit card business, Sharma said the bank is in talks with Visa Card and hopes to launch a co-branded credit card soon.
He said Lakshmi Vilas Bank will open 75 branches this year and add around 180 ATMs.
Currently the bank has 361 branches and 638 ATMs. "All our ATMs are owned ones. We will be spending around Rs.5 crore in expanding the ATM network," Palaniappan said.