Money & Banking

Bank of Maharashtra posts 13% rise in Q2 net profit

Our Bureau. Mumbai | Updated on October 19, 2020

Bank of Maharashtra branch at Sitabuldi area, Nagpur   -  THE HINDU

Bank of Maharashtra (BoM) reported a 13 per cent increase in net profit at ₹130 crore in the second quarter ended September 30, 2020, against ₹115 crore in the year-ago quarter.

The Pune-headquartered public sector bank’s net interest income edged up 4 per cent year-on-year (yoy) to ₹1,120 crore (₹1,073 crore in the year-ago quarter). Other income rose 14 per cent yoy to ₹451 crore (₹396 crore).

AS Rajeev, MD and CEO, BoM, said only ₹1,000 crore to ₹1,500 crore (or 1-2 per cent of the total advances) of the Covid-19- related stressed accounts will need restructuring. Of this, the bank has so far restructured small accounts, including retail and micro, small and medium enterprise (MSME), aggregating about Rs 42 crore.

The bank expects to sustain gross non-performing assets (GNPAs) in single digits, Rajeev added. GNPAs declined to 8.81 per cent of gross advances in the reporting quarter against 10.93 per cent in the preceding quarter.

Net NPAs declined to 3.30 per cent of net advances in the reporting quarter against 4.10 per cent in the preceding quarter.

In the reporting quarter, BoM made Covid-19 related provisioning aggregating Rs 500 crore.

Further, in view of the Supreme Court’s September 3interim order directing banks that the accounts which were not declared as NPAs till August 31shall not be declared as NPAs till further orders, BoM, as a matter of prudence, has made a provision of ₹120 crore.

Gross advances grew 13 per cent yoy to ₹1,03,408 crore. Within this, retail and MSME, advances were up 34 per cent and 33 per cent yoy, respectively. Agriculture advances increased 6 per cent yoy. Corporate advances de-grew a shade (-0.93 per cent).

Total deposits increased to ₹1,58,626, up 12 per cent yoy. The share of low cost current account, savings account (CASA) deposits to total deposits improved to 50.51 per cent in the reporting quarter against 48.23 per cent in the year-ago period.

Net interest margin declined to 2.62 per cent in the reporting quarter against 2.77 per cent in the year ago quarter.

Published on October 19, 2020

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