Bank of Maharashtra is planning to raise Rs 3,000 crore capital in FY19, R P Marathe, MD & CEO of BoM, said on Friday.
Bank of Maharashtra (BoM) is planning to raise Rs 3,000 crore capital in FY19, R P Marathe, MD & CEO of BoM, said on Friday. The government had infused Rs 3,263 crore capital last year and BoM had on its own raised Rs 313 crore during October 2017 through the QIP route.
It will be raising more capital this year to fund growth, Marathe said.
The bank, which has been placed under the PCA by RBI, reported a reduction in losses during Q4FY18 to Rs 113.51 crore from Rs 455.45 crore in Q4FY17. In the preceding quarter ended December 2017, the loss was at Rs 596.70 crore. “Slippages during Q4 were down to Rs 1,660 crore compared to Rs 3,522 crore during same quarter in FY17,” Marathe said.
Gross profit during Q4FY18 went up by 22% to Rs 546.73 crore from Rs 426.09 crore in the same period in FY17.
“The bank is in the process of consolidating its financial position recording an all-round improvement in asset quality, capital adequacy and profitability. Focused approach in increasing income and reduce expenditure has resulted in 547 basis points improvement in cost to income ratio on year on year basis in the March 2018 quarter.” Marathe said.
BoM is working on to reduce the share of corporate loans and increase the share of retail, agriculture and MSME loans in its portfolio.
“This year the bank saw its corporate loan share shrink to 56% from 60% which will be brought down to 40%,” Marathe said.
Retail advances have grown by 22.24% to Rs 16,547 crore mainly on account of growth in housing loans which was up 26.28% while vehicle loans grew by 8.94%. The share of retail advances in the loan book improved by 3.26 % YoY to 17.48%.
In the retail loan segment, BoM is looking at working with NBFCs with agility and reach to expand its own portfolio by sharing risks with the partners.
Net loss of the bank for FY18 stood at Rs 1,145.63 crore against a net loss of Rs 1,372.51 crore in FY17. Net Interest Margin improved to 2.32% in FY18 as compared to 2.16% in FY17.
Cost to income ratio in FY18 declined to 55.24% from 60.98%. Gross NPA stood at Rs 18,433 crore (19.48% of gross advances) and net NPA stood at `9,641 crore (11.24% of net advances) as on March 31, 2018.
The bank’s total business grew by 2.13% to `2,33,626.38 crore as on March 31, 2018 with deposits at Rs 1,38,981.18 crore while advances were at `94,645.20 crore.Recovery in FY1 was at `1,765 crore as compared to `810 crore in the last year. Recovery in Written off accounts in FY 2017-18 was `138.48 crore as compared to `37.81 crore in the previous year.