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Pune-based Bank of Maharashtra has posted a 89.6 per cent rise in net profit in the first quarter of this fiscal at Rs 266.33 crore against Rs 140.46 crore in Q1 of FY13.
Total income in the quarter grew 34.14 per cent to Rs 2,974 crore (Rs 2,217 crore).
Announcing the results, Narendra Singh, Chairman and Managing Director of the bank, said the bank had asked the Centre for a capital infusion of Rs 2,200 crore this year. “We expect to get this next month,” he said, adding that permission sought for Qualified Institutional Placements (QIPs) is pending with the Government. BoM plans to raise Rs 200 crore through this.
The capital will help raise its core capital adequacy ratio (CAR), which currently stands at around 7.57 per cent. Its overall CAR under Basel II norms as of end-June was 11.83 per cent. At the end of Q1 of this fiscal, the bank’s gross NPA ratio fell 44 basis points (bps) to 1.8 per cent, while the net NPA was 17 bps lower at 0.8 per cent.
Singh refuted reports that the Government had asked the bank for any explanation regarding the steep rise in its credit growth.
The new initiatives planned include launching of Maha Aasra, a reverse mortgage product aimed at senior citizens, opening 225 new branches the fiscal, and extending doorstep banking.
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