Friday, 10 November 2017

To recover losses, BoM shifts focus to retail loans

10/11/2017

PUNE: “To recover from losses, we have shifted our focus from big corporate loans to retail loans, agriculture and home loans. The demand for these loans is consistently increasing. It will help us in our journey towards profit, said R. P. Marathe, MD and CEO, Bank of Maharashtra, adding that the Bank of Maharashtra is in the process of raising Rs. 400 crores through QIP route and bank has posted operating profit of Rs. 1225 crores in HY ending September2017.  

He was speaking while announcing financial results for quarter ended Sept 2017 along with R. K. Gupta, A. C. Raut, Executive Directors of the bank. Marathe added, “Bank of Maharashtra has showcased an all- round improvement in critical areas namely profitability and NPA management. The bank is now fully focused to increase its size of the balance sheet and assets. The government’s recapitalization plan will also support us to navigate Bank towards better profitability in the next two quarters.

Some of the key highlights of Q2 are as follows:

1. The Operating profit of the Bank for sept 2017 quarter results has seen a jump of 62%
YoY and at the same time the net loss of the bank has been brought down by 93% from
Rs. 337 crore in Q2 of last year to Rs.23 crore in Q2 of FY 18.
2. The net interest margin has seen a substantial improvement from 1.87% in Q1 to 2.64%
in Q2.
3. The cost-to- income ratio of the bank has seen drop from 62.12% to 48.06% YoY.
4. Bank has maintained the CET1 capital ratio at 7.17% in Q2 as against 7% in June 2017.
5. The total capital adequacy improved from 11.08% in June 17 to 11.28% in September
2017.
6. On asset quality front, the bank has shown substantial improvement. The gross NPA as
well as the net NPA has come down in absolute numbers. The gross NPA ratio has also
marginally reduced from 18.59% in Q1 to18.54% in Q2. For the first time in last four
Quarters, the net addition to NPAs has been less than the total reduction in NPAs.
7. The delinquency ratio has also dropped from 3.91% in Q4 of last year to 1.29% in this
quarter.
8. The bank has improved its provision coverage ratio from 42% in Q2 of last year to 50% in

Q2 of this year.

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