State-owned Bank of Maharashtra (BoM) has announced a slew of offers, including concessional interest rates and a 100 per cent waiver on processing fees on retail loans. The bank under ‘Retail Bonanza-Monsoon Dhamaka’ waived the processing fee for its gold, housing and car loan and the offer is valid till September 30, 2021, BoM said in a statement on Friday.
The bank offers housing and car loans with interest rates starting from 6.90 per cent and 7.30 per cent, respectively.
The retail products are backed by several lucrative features like two free EMIs on regular repayment in the home loan; loan facility up to 90 per cent in the car and housing loans; and no pre-payment/pre-closure/part payment charges etc., it said.
Commenting on the special offer, BoM executive director Hemant Tamta said, “We intend to gift our customers an attractive proposition for availing gold, housing and car loans, who will be benefited from lower rates and waiver of processing fee offer”.
The Pune-based lender has also revamped its gold loan scheme, offering loans up to Rs 20 lakh at a 7.10 per cent interest rate, with zero processing fee up to Rs 1 lakh.
The bank has ‘Gold Loan Point‘, a dedicated counter in its select branches to facilitate gold loans within 15 minutes, it said.
Last month, the country’s largest lender State Bank of India (SBI) had announced waiving processing fees on home loans till August-end.
The government has appointed Lalit Kumar Chandel, Economic Adviser, Department of Financial Services, on the board of Bank of Maharashtra. He is appointed as Government of India nominee director on the board with effect from August 18, Bank of Maharashtra said in a statement on Thursday.
Chandel replaced Hrisheekesh Arvind Modak.
Chandel has served at various levels in different departments of Government of India, including banking, insurance, capital markets, external assistance, rural development, power, irrigation and health, it said.
He has held key positions of Director (Insurance), Department of Financial Services, Ministry of Finance; Executive Director, CVO and Financial Adviser, Insurance Regulatory and Development Authority of India, and Whole Time Director Finance, Telangana State Power Generation Corporation. PTI DP
The Centre has appointed Lalit Kumar Chandel as its nominee Director on the board of Bank of Maharashtra (BoM) with effect from August 18, 2021.
BoM, in a statement, said Kumar belongs to the Indian Economic Service (1995 batch) and is currently posted as Economic Adviser, Department of Financial Services, Ministry of Finance.
Earlier, he has also served as Director (Government Nominee) on the boards of National Insurance Company Ltd, Oriental Insurance Company Ltd, Corporation Bank, Agriculture Insurance Co of India, and National Insurance Academy.
New Delhi: State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and savings deposit growth during the first quarter of the current financial year. The Pune-headquartered lender recorded 14.46 per cent increase in gross advances at Rs 1,10,592 lakh crore in April-June period of 2021-22, as per the published data of BoM.
It was followed by Punjab & Sind Bank which posted 10.13 per cent growth in advances with aggregate loans at Rs 67,933 crore at the end of June 2021.
When it came to deposit mobilisation, BoM with nearly 14 per cent growth was a notch behind Punjab and Sind Bank, while the country’s largest lender State Bank of India recorded 8.82 per cent rise.
However, in absolute terms SBI’s deposit base was 21 times higher at Rs 37.20 lakh crore as against Rs 1.74 lakh crore of BoM.
Current Account Savings Account (CASA) for BoM saw 22 per cent rise, the highest among the public sector lenders, during the quarter.
As a result, CASA was 53 per cent or Rs 92,491 crore of the total liability of the bank.
Total business of BoM increased 14.17 per cent to Rs 2.85 lakh crore at the end of June 2021.
For the first quarter, BoM’s standalone net profit more than doubled to Rs 208 crore as against Rs 101 crore in the same period a year ago.
The bank’s asset quality improved significantly as the gross bad loans or gross non-performing assets (NPAs) dipped to 6.35 per cent of gross advances by the end of June 2021 as against 10.93 per cent by the end of first quarter of the previous fiscal.
In absolute terms, gross bad loans stood at Rs 7,022 crore at the end of June 2021, lower than Rs 10,558.53 crore recorded in the same period a year ago.
Net NPAs nearly halved to 2.22 per cent (Rs 2,352.75 crore) from 4.10 per cent (Rs 3,677.39 crore).
Homegrown auto major Tata Motors on Monday said it has partnered with Bank of Maharashtra to offer retail financing scheme for its passenger vehicles.
Under the partnership, Bank of Maharashtra will provide loans to Tata Motors’ customers at an interest rate starting from as low as 7.15 per cent linked with Repo Linked Lending Rate (RLLR), subject to certain conditions, the company said in a statement.
Besides, the scheme will offer a maximum of 90 per cent financing on the total cost of the vehicle (on-road pricing) for various individuals like salaried employees, self-employed people, professionals, businessmen, and agriculturist, it added.
On the other hand, a maximum of 80 per cent financing can be availed on the cost of the vehicle by corporate clients, the company said.
Tata Motors Passenger Vehicles Business Unit Vice president, Sales, Marketing and Customer Care Rajan Amba said, “Given the ramifications of the second wave of the pandemic, we, at Tata Motors, have always tried to make our personal mobility solutions more affordable and accessible for individuals and families at beneficial rates.”
The partnership with Bank of Maharashtra is aimed at offering special finance schemes to support to the company’s customers in these tough times, it added.
“We hope that these offers will make the process of purchasing a car that much easier for customers and that this will positively impact their overall buying experience of Tata cars,” Amba said.
Bank of Maharashtra Executive Director Hemant Tamta said, “We are optimistic that we can forge a great partnership and serve our customers with the best products and services.”
Tata Motors said the partnership is also offering its customers a hassle-free option of getting their loans approved with zero processing fee till September 30, 2021 under “Monsoon Dhamaka Offer”.
Prospective buyers can also avail of a special EMI option starting with Rs 1,517 per lakh for 7 years.banking
State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan and savings deposit growth during the first quarter of the current financial year.
The Pune-headquartered lender recorded 14.46 per cent increase in gross advances at Rs 1,10,592 lakh crore in April-June period of 2021-22, as per the published data of BoM.
It was followed by Punjab & Sind Bank which posted 10.13 per cent growth in advances with aggregate loans at Rs 67,933 crore at the end of June 2021.
When it came to deposit mobilisation, BoM with nearly 14 per cent growth was a notch behind Punjab and Sind Bank, while the country’s largest lender State Bank of India recorded 8.82 per cent rise.
However, in absolute terms SBI’s deposit base was 21 times higher at Rs 37.20 lakh crore as against Rs 1.74 lakh crore of BoM.
Current Account Savings Account (CASA) for BoM saw 22 per cent rise, the highest among the public sector lenders, during the quarter.
As a result, CASA was 53 per cent or Rs 92,491 crore of the total liability of the bank.
Total business of BoM increased 14.17 per cent to Rs 2.85 lakh crore at the end of June 2021.
For the first quarter, BoM’s standalone net profit more than doubled to Rs 208 crore as against Rs 101 crore in the same period a year ago.
The bank’s asset quality improved significantly as the gross bad loans or gross non-performing assets (NPAs) dipped to 6.35 per cent of gross advances by the end of June 2021 as against 10.93 per cent by the end of first quarter of the previous fiscal.
In absolute terms, gross bad loans stood at Rs 7,022 crore at the end of June 2021, lower than Rs 10,558.53 crore recorded in the same period a year ago.
Net NPAs nearly halved to 2.22 per cent (Rs 2,352.75 crore) from 4.10 per cent (Rs 3,677.39 crore).
Bank of Maharashtra (BoM) has waived processing fees on its gold, housing and car loans till 30 September, 2021, under its ‘Retail Bonanza-Monsoon Dhamaka’ offer.
The Pune-heaquartered public sector bank said in a statement that it is offering home loans and car loans at interest rates starting from 6.90 per cent and 7.30 per cent respectively.
Retail loans have features such as two free Equated Monthly Installments on regular repayment of home loans, loan facility up to 90 per cent in the case of home and car loans, and no pre-payment / pre-closure / part payment charges, the statement added.
The bank also revamped its gold loan scheme, whereby customers can get loans up to ₹20 lakh at 7.10 per cent interest. Further, there is no processing fee for gold loans up to ₹1 lakh.
BoM said it has set up ‘Gold Loan Points’, dedicated counters in select branches, to facilitate gold loans within 15 minutes.
Hemant Tamta, Executive Director, Bank of Maharashtra, said customers will benefit from lower rates and waiver of processing fee under the Dhamaka offer this festive season.
The current administrators of the stressed Rupee Cooperative Bank have expressed hope of a resolution of the financial institution, including a possible merger after Lok Sabha member Girish Bapat raised the issue in Parliament during the monsoon session.
Bapat urged the government to intervene regarding Rupee Bank, which has been run by Reserve Bank of India (RBI)-appointed administrators following allegations against the bank’s erstwhile management of misappropriation of funds and has been placed by the central bank under severe restrictions regarding withdrawals and advances.
Bapat said due to the restrictions, deposits worth more than a thousand crores of rupee could not be accessed by its customers, many of whom were senior citizens. He requested the Centre to revive talks of the bank’s possible merger with the Bank of Maharashtra.
When approached by TOI, a Bank of Maharashtra official declined to comment on Bapat’s speech. A source familiar with the issue said talks between the banks went on till 2018 when the Bank of Maharashtra was scheduled to take over Rupee Bank’s assets and liabilities under a scheme formulated by the RBI. However, the talks cooled after that. Rupee Bank is currently awaiting clearance from the RBI to merge with the Maharashtra State Cooperative Bank (MSCB), which is largely involved in agricultural banking, rather than retail.
“Bapat’s speech sparks hope of some resolution to the situation of the bank. If the Centre or the RBI decides to revive Rupee Bank’s merger with Bank of Maharashtra, we are ready to take the necessary steps,” said Sudhir Pandit, the administrator of Rupee Bank.
The bank’s gross NPA declined to 6.35% as on June 2021, against 10.93 % last year.
Bank of Maharashtra (BoM) on Thursday reported a 106% year-on-year (y-o-y) rise in net profit at Rs 208 crore in the June quarter. The bank’s net interest margin improved to 3.05% from 2.43% in the corresponding quarter last year. Its net interest income increased by 29% to Rs 1,406 crore in the quarter compared to Rs 1,088 during Q1FY21. Net non-performing assets (NPAs) fell by 188 basis points to 2.2% from 4.10% last year.
The bank’s gross NPA declined to 6.35% as on June 2021, against 10.93 % last year. The bank’s provision coverage ratio improved to 90.70% as against 85.62% last year. During the quarter, the bank made Covid-19 provision of Rs 285 crore, taking the total Covid provisions to Rs 1,000 crore.
The bank’s operating profit grew by 56% to Rs 1,110 crore. The bank’s cost of funds reduced by 58 basis points. Gross advances increased by 14.46% to Rs 1,10,592 crore in Q1FY22 y-o-y, with the retail loans growing by 19.35% to Rs 28,871 crore driven by rise in housing and vehicle loans.
Net revenues for Q1FY22 improved by 44% to Rs 2,097 crore. The bank’s fee based income increased by 68% on y-o-y basis to Rs 245 crore. Non-interest income rose by 87% to Rs 691 crore in Q1FY22. There was an improvement in the cost to income ratio to 47.05 % for Q1FY22 as against 51.25 % for Q1FY21.
The bank’s CEO A S Rajeev said the bank had performed well on all parameters.
Restructuring had helped the bank improve performance and he was confident that the bank would continue on this track and perform even better. Big ticket advances had turned bad so the bank went through a difficult time but now they had turned around, Rajeev said.
Two of these exposures are in National Company Law Tribunal (NCLT). The DSK Developer account is with NCLT and it has received two applications from prospective investors which was being processed and would be finalised shortly, he said.
In case of the Videocon case, the bank has gone to the National Company Law Appellate Tribunal (NCLAT) as the value offered by Vedanta group company, Twin Star, was low.
As the matter was sub judice, he did not want to discuss more and said they would go with whatever was decided by the courts. This resolution called for a 95% haircut so BoM, SIDBI and IFIC have moved NCLAT.
Bank of Maharashtra (BoM) has raised ₹403.70 crore via qualified institutions placement (QIP) issue of equity shares.
The public sector bank’s issue committee on Friday approved closure of the QIP issue of equity shares following receipt of application forms for an aggregate of ₹17.03 crore fully paid up equity shares of the bank and funds amounting to ₹403.70 crore in the escrow account from eligible qualified institutional buyers.
The committee also determined and approved the issue price of ₹23.70 per equity share (including a premium of ₹13.70 per equity share).
The issue price is at a discount of 4.78 per cent (₹1.19 per equity share) to the floor price of ₹24.89 per equity share, BoM said in a regulatory filing. The bank’s QIP issue had opened on July 13.
BoM had allotted 73.60 crore equity shares of ₹10 each to the government of India at an issue price of ₹11.29 per equity share on August 25, 2020, against capital infusion of ₹831 crore. It also raised Tier II capital of ₹505.70 crore in FY21.
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