State-owned Bank of Maharashtra on Tuesday reported a net loss of Rs 182.51 crore for the quarter ended December, as the bank’s revenue remained largely unchanged from the corresponding period last year and net interest income declined. BoM had reported a net loss of Rs 337.50 crore in the year-ago period.
Total income for the quarter under review stood at Rs 3,473.77 crore, largely unchanged from Rs 3,475.98 crore last year. However, a rise in non-performing loans exerted pressure on margins, thereby bringing net interest income, the difference between interest earned and interest expended, down to Rs 702.14 crore, 28% lower y-o-y.
Provisions and contingencies for the quarter came in at R585.41 crore, of which Rs 532.17 crore was for non-performing loans. The portion for NPLs was more than double the amount in the year-ago period and overall provisions were around 70% higher Y-o-Y.
The public sector lender also witnessed deterioration in the asset quality, with gross non-performing loans as a percentage of total loans rising to 15.08%, as against 7.97% at the same period last year. Net non-performing loans rose to 10.67% from 5.52%.
Both gross and net NPA increased sequentially as well, rising by 100 basis points and 73 basis points, respectively. However, provisions made for bad loans came down 19% quarter-on-quarter.
Meanwhile, UCO Bank on Tuesday reported that its net loss narrowed by close to 71% year-on-year to R437.09 crore for the quarter ended December 31, 2016, from R1,497.01 crore for the same period a year ago on the back of lower provisions to cover bad loans.
The Kolkata-based bank’s asset quality, however, worsened further as its gross non-performing asset ratio rose to 17.18% at the end of the December quarter from 10.98% for the same period last fiscal, according to a BSE filing.During the period under review, the lender’s total income saw a 1.43% y-o-y dip at Rs 4,864.21 crore, against Rs 4,934.63 crore in the year-ago period.
Provisions and contingencies decreased by close to 44% y-o-y to Rs 1,326.05 crore from Rs 2,360.84 crore in the corresponding period last fiscal.The bank’s net NPA ratio rose to 8.99% in the December quarter of from 6.51% during same period of the previous fiscal.