Tag: AS Rajeev

Bank of Maharashtra expects total business to cross Rs 3 lakh crore soon, BFSI News, ET BFSI

Banking & Finance

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State-owned Bank of Maharashtra (BoM) is well poised to cross Rs 3 lakh crore in total business soon on the back of the improved economic sentiment, a top official has said. The bank has been a performer in various key parameters, including deposit mobilisation, credit growth, recovery, risk management etc, BoM managing director and CEO A S Rajeev told PTI.

Despite challenging times, he said, the bank has consistently expanded its balance sheet and reduced non-performing assets (NPAs).

Going forward, he said, the bank is well poised to cross the business mix of Rs 3 lakh crore soon as economic activity gathered pace with moderation in COVID-19 cases.

The total business (deposits and advances) of BoM increased by 14.17 per cent to Rs 2.85 lakh crore at the end of June 2021.

To further mobilise low-cost deposits, Rajeev said the bank has opened a dedicated branch to manage government business.

This specialised branch, inaugurated by Minister of State for Finance Bhagwat K Karad on Thursday, will provide better service to the government departments and Central Public Sector Enterprises (CPSEs).

Along with MD and CEO, other senior officials of the bank — including general manager Chitra Datar and Deputy General Manager Nayana Sahasrabuddhe — were also present at the inauguration of the new branch.

He said expansion in the government business would provide access to low-cost deposits and a reduction in the cost of funds, leading to a lower rate for the borrowers.

Rajeev also said that the bank has launched special offers for the retail segment, including housing and auto.

The bank has already started a loan outreach programme, and all the field functionaries have been sensitised, he said, adding this should give a good dividend.



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No bank has been finalised for privatisation: Bank of Maharashtra MD

Banking & Finance

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With a lot of buzz around the privatisation of Bank of Maharashtra and other public sector banks, a top official from the bank informed that they have not yet heard anything from the government on its privatisation.

“The government has not yet finalised any bank (for privatisation). This is a decision taken at the policy level. The process is going on and some of the banks are being considered for privatisation, but the modalities are yet to be decided. We don’t know how long it may take,” said AS Rajeev, Managing Director and CEO, Bank of Maharashtra.

Financial parameters

Rajeev further stated that the bank is in a comfortable position on financial parameters. Bank of Maharashtra has a loan book of ₹1.05-lakh crore, of which, the moratorium restructuring book is about ₹1,300 crore. “That is almost 1 per cent of the total loan book. We have already made provision of ₹1,500 crore to that. This is a floating provision under the covid impact. We are adequately covered for this,” he said, adding that the lender has already recovered around ₹850 crore for the nine months of the current fiscal.

“Additional ₹700 crore of recovery is in the pipeline for the remaining three months. So, total recovery for the current fiscal will be around ₹1,500 crore. In recoveries, and in the overall financial areas, we are in a comfortable position,” he said during his visit to Ahmedabad.

Agriculture, retail and MSME sectors account for about 61 per cent of the overall loan book, while 39 per cent is corporate loans.

“In the corporate sector, our exposure is about ₹40,000 crore, of which, one big account of ₹400-450 crore has chances of turning into NPA, but that is already classified and we have made provisioning for that. We don’t see any surprises in the remaining three months of the fiscal,” added Rajeev.

He informed that the bank’s gross NPA stood at 7.69 per cent and net NPAs at 2.59 per cent. “It is one of the best in the industry. We are expecting that this can be further brought down in March. Recovery measures are already in place,” he said.

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