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Bank of Maharashtra has managed to cut the proportion of its corporate advances to 56 per cent of its overall loan portfolio as of March-end 2018 against 60 per cent as of March-end 2017.
Simultaneously, the Pune-headquartered public sector bank has increased the proportion of non-corporate advances to 44 per cent of its overall loan portfolio as of March-end 2018 against 40 per cent as of March-end 2017.
The bank classifies loans above ₹5 crore as corporate advances and those below ₹5 crore as non-corporate advances. This shift in loan portfolio composition comes in the backdrop of gross non-performing assets rising to 19.48 per cent of gross advances as of March-end 2018 against 16.93 per cent as of March-end 2017. The bank is facing asset quality pressures in its advances to large corporates, mid-corporates and small and medium enterprises.
Gross advances shrunk 6.79 per cent year-on-year (y-o-y) to ₹94,645 crore as of March-end 2018 against ₹1,01,537 crore as of March-end 2017.
C-D ratio
With deposits remaining almost flat at ₹1,38,981 crore and gross advances declining, the credit-deposit ratio came down to 68.10 per cent against 73.02 per cent, as per the bank’s investor presentation.
Within gross advances, priority sector advances nudged up 1.33 per cent y-o-y at ₹37,521 crore and non-priority sector advances de-grew 11.45 per cent y-o-y at ₹57,124 crore.
As per data on funded exposure to select sectors, the bank’s exposure to the commercial real estate sector was down 45.79 per cent at ₹3,189 crore, while exposure to the infrastructure sector was lower by 14.54 per cent at ₹9,447 crore. Exposure to the non-banking finance sector inched up 4.3 per cent at ₹12,704 crore.
Within the infrastructure sector, exposure to the power sector was down 32.26 per cent at ₹3,853 crore; to the roads sector, it was lower by 8.34 per cent at ₹ 2,848 crore; and to the ports sector, it shrunk by 7.54 per cent at ₹333 crore. However, exposure to the telecom sector soared 328 per cent at ₹644 crore.
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