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Kamal Narang

‘Encouraging performance’: Mr M.D.Mallya (right), CMD, Bank of Maharashtra, and Mr Rajiv Madhok, ED, at a press conference in the Capital on Wednesday. –

Our Bureau

New Delhi, April 30 Bank of Maharashtra (BoM) on Wednesday reported a 20.8 per cent increase in net profit for the year ended March 31, 2008 at Rs 328.39 crore as compared to net profit of Rs 271.84 crore in the previous year.

“This encouraging financial performance came despite difficult market conditions and additional provisioning towards employee benefits under revised AS-15. There was also outgo on IT expenditure,” Mr M.D. Mallya, the bank’s Chairman and Managing Director, told a press conference.

The board of directors which met here on Wednesday, declared a dividend of 20 per cent. Operating profit for the period under review stood at Rs 672.63 crore (Rs 613.20 crore).

Mr Mallya said that the bank has set off against its reserves the entire Rs 269 crore of transitional liability that arose from revised AS-15 (employee benefits). It also provided Rs 50 crore in the profit and loss account for 2007-08 on this account.

Besides the impact of revised AS-15, the bank’s provision for income tax has seen a quantum jump in 2007-08 to Rs 191.77 crore (Rs 64 crore in 2006-07). In 2006-07, the bank utilised benefits from deferred taxes, which was not available in 2007-08, said officials.

“For this year (2008-09), we expect the topline growth to be sustained. The net profit will grow in tandem with the topline,” Mr Mallya said. Total income of the bank for the year ended March 31, 2008 stood at Rs 3,821 crore, an increase of 27.91 per cent over the Rs 2,987 crore recorded in the previous year.

Mr Mallya also indicated that the bank may come up with a follow-on public offering (FPO) sometime during the current fiscal. The Government’s stake in the bank stood at 77 per cent, he said.

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