The Hindu Business Line : Bank of Maharashtra PAT up 178 pc

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Pune Jan. 25 Bank of Maharashtra posted 178 per cent growth in net profit for the quarter ending December 2006, up at Rs 74.32 crore against Rs 26.75 crore for the corresponding quarter last fiscal. The operating profits at Rs 171.34 crore were up 48.29 per cent, while total income increased by 15.65 per cent to touch Rs 765.30 crore during the same period.

The net profit for the nine-month period of the current fiscal rose 133 per cent to Rs 196.57 crore, from Rs 84.20 crore last year. The total business of the bank during the same period was pegged at Rs 51,914 crore registering a growth of 23 per cent on a YoY basis, and well over the set target of Rs 50,500 crore. It expects to close the current fiscal at Rs 56,000 crore.

The Chairman and Managing Director, Mr M.D. Mallya, attributed the robust increase in profitability to three factors, recoveries being one of them. "Interest income from advances increased 46.08 per cent to Rs 443.27 crore, the non-interest income was up 49.72 per cent at Rs 114.79 crore.

Recoveries for the quarter and the nine month period stood at 94 crore and Rs 213.40 crore respectively," he said. This is well above the Rs 178 crore recovered during the whole of the 05-06 fiscal, he added.

This has led to BoM's net NPAs to net advances ratio to decline from 2.31 per cent on Dec 31, 2005 to 1.5 per cent on Dec. 31, 2006. It's capital adequacy ratio stands at 11.76 per cent. Mr Mallya stated, adding that the per-employee business is up at Rs 372 lakh from Rs 313 lakh last year.

The 15.85 per cent increase in the total deposits of Rs 30,766 crore is attributed to a rise of 30.29 per cent in low cost deposits. The ratio of low cost to total deposits showed improvement from 39 per cent to 44 per cent. The current account to savings account (CASA) ratio also was a strong performance area showing an overall improvement of 30.29 per cent.

During the third quarter, the bank added three lakh new accounts, and has achieved a customer base of 1.1 crore accounts. It opened four new branches, and the total network now comprises 1,325 fully computerised branches and 16 extension counters. The core banking solution initiative started in May is expected to cover 75 branches by March, 200 by June and 600 by the end of the year.

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