Bank of Maharashtra posts Rs 135 crore net profit in Q3

By: |
Published: January 21, 2020 2:30:04 AM

Gross advances stood at Rs 93,882 crore while total deposits increased to Rs 1,41,986 crore, showing a growth of 4.4%.

bank of baroda, banking sector, banking induustryThe bank does not expect any slippages in the last quarter of FY20.

Bank of Maharashtra on Monday reported a net profit of `135 crore for the third quarter of the current fiscal, compared with a loss of Rs 3,764 crore in Q3FY19.

The bank reported one of its highest operating profits in the last three years with a 95% rise to Rs 842 crore during the quarter, AS Rajeev, MD & CEO, said. The bank is hoping for some capital infusion from the government. Last time, the bank did not get the capital, so chances are there that it will get this time, he said.

Rajeev said the rise in profits was on account of a 36% increase in net interest income to Rs 1,186 crore and increase in recovery of written-off loans. Net interest margin improved to 2.86% from 2.41%, he said. The bank’s cost to income ratio improved to 48% in Q3FY20 from 66% in Q3FY19. Total interest income increased 14% to Rs 3,016 crore. The gross NPA as well as net NPA decreased to 16.77% and 5.46%, respectively.
Losses in Q3FY19 were on account of cleaning up of the balance sheet and higher provisioning, but now there are a lot of headwinds in the market, the BoM MD said. The bank will grow advances by 8-10% by end of the year, he said. “We do have risk appetite and good liquidity to grow the business”, Rajeev said.

The bank does not expect any slippages in the last quarter of FY20.

AC Rout, ED of BoM, said the bad patch at the bank was over and it has strengthened its balances sheet. The bank had increased the share of retail, agriculture and MSME loans, which now account for 57% of total advances. Corporate loans have remained flat during the quarter. The share of CASA deposits to total deposits increased to 48.07% as on December 31, compared with 46.88% as on December 31, 2018, Rout said.
Gross NPA was down to 16.77% from 17.31% in the year-ago period, while the net NPA stood at 5.46% as against 5.91%. The bank has a provision coverage ratio of 82.63% as on December 31.

Gross advances stood at Rs 93,882 crore while total deposits increased to Rs 1,41,986 crore, showing a growth of 4.4%.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Bank of Maharashtra net profit jumps to Rs 135 crore in December quarter
2Bank unions call two-day strike from January 31
3Global private equity investors raising more funds despite declining returns is not a sign of success