Commenting about the third quarter results for the period ending December 31, 2013, Rajendran said the net profit of the bank declined by 82.1 percent to Rs 46 crore due to higher provisioning on account of high NPAs.
CVR Rajendran, CMD, Andhra Bank, told CNBC-TV18 that the banks earnings will improve by the second quarter next fiscal, during which time the bank may look to raise additional capital through a qualified institutional placement.
More than 30 percent of Bank of Maharashtra's deposits are in interest-sensitive deposits, which come to more than Rs 1 crore, and unless the cost of deposits is increased, the bank may not be in a position to retain these deposits
Since their bank's base is small the credit growth in percentage terms appears to be large. So, the credit growth for the bank will remain above industry but will moderate to 16-18 percent in FY14, says CVR Rajendran, ED, Bank of Maharashtra.