Bank of Maharashtra Q2 PAT down 72%, asset quality worsens

Moneycontrol Bureau

Public sector lender Bank of Maharashtra disheartened the street with second quarter (July-September) net profit falling 72 percent year-on-year to Rs 46.8 crore on higher provisions.

Provisions and contingencies jumped 45 percent on yearly basis (up 20 percent sequentially) to Rs 323 crore during September quarter while provision coverage ratio fell drastically to 58.91 percent from 79.33 percent year-on-year.

Net interest income - the difference between interest earned and expended - rose 22 percent Y-o-Y to Rs 876 crore in three-month period ended September 2013.

Net interest margin declined to 2.7 percent from 3.03 percent Q-o-Q.

Asset quality worsens

Gross non-performing advances (GNPAs) as a percentage of gross advances expanded 97 basis points sequentially (up 77 bps year-on-year) to 2.77 percent while net NPAs as a percentage of net advances increased 96 bps quarter-on-quarter (up 88 bps Y-o-Y) to 1.76 percent during September quarter.

In absolute terms, gross NPAs jumped 63 percent Q-o-Q and 90 percent Y-o-Y to Rs 2,450 crore and net NPAs surged 134 percent Q-o-Q (up 175 percent Y-o-Y) to Rs 1,535 crore in the quarter gone by.

The bank restructured loans of Rs 800 crore during the quarter as against Rs 267 crore in June quarter and its slippages were Rs 800 crore.

It has provided for wage provisions of Rs 99 crore during September quarter.

At 14:54 hours IST, the stock was trading at Rs 39.25, down 2.36 percent amid large volumes on the BSE.