Bank of Maharashtra profit declines 56%

Written by fe Bureau | Pune | Updated: Aug 5 2014, 07:07am hrs
Bank of Maharashtra reported a 56% drop in net profit at R117.82 crore in the quarter ended June 30, 2014, owing to a threefold increase in NPAs.

Profit after tax stood at R266.33 crore in the corresponding quarter last year. Asset quality deteriorated with gross NPAs rising to 4.23% from 1.8%, while net NPAs increased to 2.94% from 0.8%, the bank said.

The NPA provision coverage ratio stood at 49.73 %.

In absolute terms, gross NPAs stood at R3,761.29 crore as on June 30. Net NPAs stood at R2,563.19 crore. The NPA provision coverage ratio stood at 49.73%. The net interest margins was 2.7% in the reporting quarter.

Net interest income, which is the difference between interests paid on deposits and the interest earned from lending, was up 1% at R914.54 crore from R908.02 crore in the year-ago quarter.

The capital adequacy ratio under Basel-III norms was at 10.75% against the regulatory required level of 9%.

Total deposits were up 10.35% at R1,16,364.77 crore. Total business of the bank rose 8.88% to R2,05,200 crore as on June 30, 2014, from R1,88,457.09 crore. Advances increased 7.02% to R88,835 crore from R83,010 crore in the same period last year.