Bank of Maharashtra (BoM)
State-owned Bank of Maharashtra on Tuesday reported a 14 per cent jump in net profit to Rs 154 crore for the third quarter ended December, helped by improved asset quality and higher interest income.
The lender had posted a net profit of Rs 135 crore in the same quarter previous fiscal. "The asset quality position of the bank has improved a lot and it looks to be comfortable in future also," the bank's managing director and CEO A S Rajeev told reporters.
Net interest income of the bank increased by 10.12 per cent to Rs 1,306 crore. Net interest margin (NIM) improved to 3.06 per cent as against 2.86 per cent. For the first time in the last three-four years, the bank's NIM has crossed 3 per cent, Rajeev said.
Gross non-performing assets (NPAs) of the lender improved to 7.69 per cent from 16.77 per cent in the same quarter of the previous fiscal. Net NPAs stood at 2.59 per cent as against 5.46 per cent. Its provision coverage ratio improved to 90 per cent.
The Pune-based lender holds cumulative COVID-19 provision, including interest, of Rs 955 crore (out of which Rs 30 crore provision made in the December quarter). As per the Supreme Court order, the lender has not declared accounts as NPA, which were not declared NPA till August 31, 2020. It has made an additional provision of Rs 150 crore (out of which Rs 30 crore provision made in the third quarter).
Rajeev said the bank's special mention account (SMA 2) stands at Rs 1,500 crore. This includes Rs 1,000 crore of accounts where the moratorium was given and they are going to be restructured. For these accounts where restructuring is to be done, the bank has already made a provision of Rs 110 crore. Fresh slippages in the quarter were around Rs 11 crore. Recovery and up-gradation stood at Rs 275 crore.
The lender expects a recovery of around Rs 750 crore in the fourth quarter of the current fiscal,Rajeev said. Its total Basel III capital adequacy ratio stood 13.65 per cent with common equity tier 1 ratio of 10.54 per cent.
Net advances increased 20.31 per cent to Rs 99,401 crore. RAM (retail, agri and MSME) business registered a growth of 21.25 per cent during the quarter. Total Deposits increased by 14.08 per cent to Rs 1,61,971 crore. The bank's scrip closed at Rs 15.89 apiece, up 7.73 per cent, on BSE on Tuesday.