3/8/2018
PUNE: Bank of Maharashtra reported a loss for the 10th consecutive
quarter as bad loans continued to mount and provisions soared. The bank said on
Friday that its June quarter loss widened to Rs 1,119 crore from Rs 412.20
crore a year ago.
Board of Directors of Bank of Maharashtra announced the
financial results for Quarter ended June 30, 2018 today. Speaking on the
occasion, A.C. Rout, Executive Director of the Bank stated, “The bank has
focused all its efforts in recovery and improvement in asset quality. In the
quarter ended June 2018, the Bank recovered NPAs of Rs.858 Crores. During the
period the Bank has reported 23.92% per cent growth in Net Interest Income as
compared to the same period previous year. The same was possible due to
effective liability management.”
Elaborating on future plans of the Bank, Rout said, “We are in
the process of rebalancing our asset portfolio with focus on retail, agri and
MSME (RAM) sectors for diversification of risk. The Bank is committed to the
reforms agenda initiated by the Govt of India for PSBs and the positive results
can be seen in coming quarters.”
Profitability:
Net interest income of the Bank in quarter ended June 30, 2018 increased
by 23.92% Y-o-Y to Rs.858.49 crore from Rs.692.80 crore in quarter ended June
30, 2017.
Net Interest Margin (NIM) improved to 2.33% for Q1 of FY 2018-19
as compared to 1.87% in Q1 of FY 2017-18.
Operating Profit for the quarter ended June30, 2018 stood at Rs.470.32
crore as against Rs. 533.48 crore in June 2017 quarter.
Operating Expenses have come down marginally for the quarter
ended June 30, 2018 as compared to the quarter ended March 31, 2018.
On the basis of sustained high CASA deposit ratio cost of deposit has
come down by 59 basis points to 4.99% in June 2018 quarter from 5.58% in June
2017 quarter.
Interest expenses for the June30, 2018 quarter declined by 13.16% to
Rs.1782.06 crore as compared to Rs 2052.09 crore in the corresponding
period of previous year.
Non-Interest income stood at Rs. 346.55 crore in the quarter ended
30.06.2018 as compared to Rs.464.95 crore in the corresponding quarter of
previous year. The reduction in non-interest income was due to lower
profits from sale of investment by Rs.104 crore in light of adverse interest
rate scenario.
Net loss of the Bank stood at Rs. 1119 crore for the quarter ended for
June30, 2018, as against net loss of Rs. 412.20 crore in corresponding
period of previous year. For quarter ended March 31, 2018 net loss of the Bank
stood at Rs. 113.49 crore.
Business:
Total business of the Bank stood
at Rs.219458.33 crore as on 30.06.2018 as compared to Rs.233724.94 crore as on
30.06.2017.
As on 30.06.2018 total deposits stood at Rs.135410.85 crore & Gross
advances stood at Rs.84047.48crore.
Retail advances have grown by 4.05% Y-o-Y to Rs. 16,767 crore mainly on
account of handsome growth in Vehicle Loans (37.37%). Share of retail advances in
the loan book has improved to 19.95% as on 30.06.2018 from 16.60% as on
30.06.2017.
CASA deposits constitute 46.33% of total deposits and posted modest
Y-o-Y growth of 4.15%.
NPA
Management:
Cash recovery and up-gradations in Q1 of FY 2018-19increased
by 39% Y-o-Y to Rs. 1124 crore as compared to Rs 807 crore in the corresponding
period of previous year.
Gross NPAs and Net NPAs reduced by Rs.249 crore and Rs.2064 crore
respectively Y-o-Y.
As on 30.06.2018 Gross NPA stood at Rs, 17800 crore
(21.18% of gross advances) and Net NPA stood at Rs. 9195 crore (12.20% of net
advances).
Provision Coverage Ratio has improved by about 15 percentage points to
62.19% as on June 30, 2018 from 47.32% as on June 30, 2017.
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