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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