Lakshmi Vilas Bank (LVB) is planning to raise around Rs 350 crore through Qualified Institutional Placement (QIP) or other modes, by the end of September, this year.

 The Bank has reported encouraging results in the first quarter ended June 30, 2015, with the net profit registering a growth of 43 per cent at Rs.40.26 crore against Rs.28.16 crore in the same period in the previous year. The operating profit rose sharply by 57.06 per cent to Rs.109.57 crore from Rs.69.76 crore in the year-ago period.

 The Bank, which has last year cut down its target of opening branches, is expected to open at least 60 branches this year, said Rakesh Sharma, Managing Director and CEO,  LVB.

 Speaking to reporters after announcing the financial results for the quarter ended June 30, 2015, Sharma said that the Bank is planning to raise the fund to maintain its capital adequacy ratio.

 Total income registered a growth of 18.4 per cent year-on-year at Rs.693.06 crore against Rs.585.36 crore with other income registering a rise of 43.7 per cent at Rs.78.97 crore against Rs.54.97 crore. Gross advances grew by 23.4 per cent to Rs.16,562.87 crore as on June 30, 2015, from Rs.13,422.38 crore as on June 30, 2014. Mr. Sharma said the focus was on retail and MSME segments with 63 per cent exposure.

 Total deposits went up by 18.6 per cent year-on-year to Rs.22,239.48 crore from Rs.18,758.44 crore. There was a reduction in gross NPA to 2.72 per cent from 3.96 per cent and in the net NPA to 1.72 per cent from 3.19 per cent.

 LVB’s capital adequacy ratio is above 10 per cent, which is currently more than the mandatory requirement, he added.

 It has set up 71 branches in 2013-14 and had a target to set up another 75 branches in 2014-15. However, it has later reduced the target numbers and opened around 40 branches during the year, with more focus on stabilising business in the branches opened during 2013-14.

 The bank was planning to raise Rs.300 crore to Rs.350 crore additional funds mostly through private placement of shares with qualified institutional investors.

 It currently has around 400 branches spread across 16 States and 1 Union Territory and a network of a total 820 ATMs till the end of June 30, 2015.

 It has received approval from Reserve Bank of India to open 60 more branches this year, of which around 15 would be open in North India, where the Bank is increasing its presence, said Sharma.