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Bank of Maharashtra reported a 103 per cent year-on-year (yoy) jump in second quarter net profit at ₹264 crore against ₹130 crore in the year-ago quarter on the back of robust growth in net interest income and non-interest income.
The Pune-headquartered public sector bank’s bottomline improved despite an increase in its operating expenses and rise in loan loss provisions.
Net interest income (difference between interest earned and interest expended) rose 34 per cent y-o-y in the reporting quarter to ₹1,500 crore (₹1,120 crore in the year-ago quarter).
Non-interest income, comprising fee-based income, treasury income and miscellaneous income, was up 23 per cent y-o-y at ₹493 crore (₹402 crore).
MD & CEO AS Rajeev said the net interest margin (net interest income/average interest earning assets) at 3.27 per cent in the reporting quarter (against 3.05 per cent in the first quarter) is the highest in the last four-five years.
Operating expenses were up about 22 per cent y-o-y at ₹932 crore (₹766 crore). This includes additional liability of ₹217.70 crore due to enhancement in family pension.
Loan loss provisions jumped to ₹583 crore, including towards increase in provisions on account of implementation of resolution plans under RBI’s “Resolution Framework for Covid-19 related stress” against a write-back of ₹4.55 crore in the year-ago quarter.
NPAs decline
Gross non-performing assets (GNPAs) declined by ₹618 crore (net) during the quarter to ₹6,403 crore.
Of the total ₹1,236 crore reduction in GNPAs during the quarter, ₹645 crore was on account of recovery and upgradation. Recovery in written-off accounts includes ₹258 crore from DHFL.
Gross addition in NPAs stood at ₹618 crore, including ₹553 crore on account of fresh slippages.
GNPAs declined to 5.56 per cent of gross advances as at September-end 2021 against 6.35 per cent as at June-end 2021.
Net NPAs position also improved to 1.73 per cent of net advances against 2.22 per cent.
The bank has ₹550 crore exposure to SREI group, and has made full provision towards this exposure. The Kolkata Bench of the National Company Law Tribunal has admitted the RBI’s petitions for insolvency resolution process against Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL).
Total deposits increased by 14.47 per cent y-o-y to ₹1,81,572 crore. Gross advances rose by 11.44 per cent y-o-y to ₹1,15,235 crore.
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