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Bank of Maharashtra reported a turnaround performance in the fourth quarter ended March 31, 2019, reporting a net profit of ₹72.38 crore, against a net loss of ₹113.51 crore in the year-ago quarter.
The bottomline was supported by higher net interest income (NII), up 13.50 per cent year-on-year (YOY), and sharply lower loan-loss provisioning burden.
The bank, which was taken out of the Reserve Bank of India’s (RBI) prompt corrective action (PCA) framework three months ago, recorded NII of ₹1,000 crore (₹881 crore in the year-ago quarter). Provision for loan losses was at ₹237 crore (₹1,995 crore). Other income was down 4 per cent YOY at ₹386 crore in the reporting quarter. During the quarter, gross non-performing assets (GNPAs) increased by about ₹185 crore to touch ₹15,324 crore.
GNPAs declined to 16.40 per cent of gross advances as of March-end 2019, against 17.31 per cent in the preceding quarter. The net non-performing assets (NPAs) declined to 5.52 per cent of net advances as of March-end 2019, from 5.91 per cent in the preceding quarter. The board of the bank approved setting off its accumulated losses aggregating to ₹7,327.53 crore as of March-end 2019 against the balance available in the bank’s share premium and revenue reserve account as on the date of set-off.
This is aimed at presenting a true and fair view of the bank’s financial position, and to take the same into account during the financial year 2019-20, subject to necessary approvals/ permissions.
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