Money & Banking

Bank of Maharashtra profit rises to ₹115 cr

Our Bureau Mumbai | Updated on October 22, 2019 Published on October 22, 2019

Bank of Maharashtra (BoM) reported a jump in net profit to ₹115 crore in the second quarter ended September 30, 2019, against ₹27 crore in the year-ago quarter, helped by lower loan-loss provisioning burden.

The pressure of loan-loss provisioning was 57 per cent lower at ₹404 crore in the reporting quarter, against ₹942 crore in the year-ago quarter.

Net interest income was up 7 per cent at ₹1,073 crore (₹1,003 crore in the year ago quarter). Other income, comprising fee, trading profit and miscellaneous income, was a tad lower at ₹396 crore (₹405 crore). During the quarter, gross non-performing assets (GNPAs) declined by ₹1,241 crore to stand at ₹15,409 crore as of September-end 2019. Though the business (deposits plus advances) growth was muted in the first half of FY2020, BoM MD and CEO AS Rajeev expects deposit and credit growth to pick up in the second half. He added that the pressure of bad loans provisioning is tapering.

Rajeev said the advances mix is undergoing a change with the RAM (retail, agriculture, MSME) to corporate advances ratio now at 54: 46 against 50:50 in the year-ago period. The GNPA ratio improved to 16.86 per cent of gross advances in the reporting quarter, against 17.90 per cent in the preceding quarter. The net NPA ratio also improved to 5.48 per cent of net advances against 5.98 per cent.

Published on October 22, 2019
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