Tag: bank of maharashtra

Bank of Maharashtra partners with Vayana Network to offer help MSMEs, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Bank of Maharashtra (BoM)has entered into a strategic partnership with Vayana Network to offer financial support to the MSME sector. Through this association, BoM will provide short term credit to meet funding requirements of dealers of corporates via “Mahabank Channel Financing Scheme” launched by the bank, through Vayana Network’s expertise in this segment.

Under the partnership, Vayana Network will provide its Supply Chain Financing solutions (SCF) to the bank supported by Vayana’s technology and service expertise. The SCF solutions will include vendor and dealer financing programs across bank’s network of 1,870 branches across the country. Vayana Network’s proprietary tech platform will help to digitize the transactions of Supply Chain Financing, while the market services will help to increase penetration in the under-served MSME segment.

In a statement, AS Rajeev, MD & CEO of Bank of Maharashtra said, “We believe in the power of partnerships, and hence have tied up with Fintechs to launch innovative digital offerings. Through this partnership with Vayana, we look forward to offer a digital financing experience to our MSME customers, suppliers and distributors of leading corporates.”

“MSMEs are the backbone of our economy and Bank of Maharashtra is committed to support their recovery and growth in a post pandemic world. Easy and affordable access to working capital is critical to make supply chains resilient and to boost the mission of Atmanirbhar Bharat. The tie-up with Vayana has enabled go-to-market for the Bank and we look forward to adding a robust portfolio within our MSME business through Channel Financing Scheme,” said Hemant Tamta, Executive Director of Bank of Maharashtra, in a statement.

Ram Iyer, Founder and CEO, Vayana Network, in a statement said, “Supply Chain Finance or Trade Finance has become a critical vehicle for affordable MSME loans. It has especially gained more traction in the post COVID era as both corporates and their MSME supply chains aim to streamline their working capital cycles and liquidity. At this juncture, MSMEs are looking to rebound in 2021 and the ease to access finance is the need of the hour. Our partnership with Bank of Maharashtrawill help them to rapidly scale up the SCF portfolio supported by our tech platform at virtually zero risk.”

Vayana Network has enabled over $6 billion (Rs. 45,000 crores) in trade finance for 300 supply chains in 25 different industries. The company connects corporates and their trade ecosystems to provide digital, convenient and affordable access to credit for their payables and receivables. Vayana has processed over 1.7 million transactions and offers a zero-change experience to customers. It is present in 600 cities in India and 20 countries across the globe.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

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

Banking & Finance

[ad_1]

Read More/Less


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.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Employees’ union voice concerns against privatising BoM

Banking & Finance

[ad_1]

Read More/Less


Bank of Maharashtra’s (BoM) employees’ union wants the government to maintain the public sector character of the bank in the backdrop of the problems that two private sector banks – YES Bank and Lakshmi Vilas Bank – and a host of urban co-operative banks (UCBs) faced in the recent past.

“Customers are scared of private sector banks, more particularly after the YES Bank episode. In Maharashtra, Punjab and Maharashtra Co-operative Bank customers have suffered a lot.

“The Reserve Bank of India (RBI) has cancelled the licence of Subhadra Local Area Bank (Kolhapur) from private sector and Shivam Sahakari Bank (Ichalkaranji, Kolhapur) and The Karad Janata Sahakari Bank (Karad) from UCB sector,” said Devidas Tuljapurkar, General Secretary, All India Bank of Maharashtra Employees Federation (AIBoMEF), in a statement.

He emphasised that the RBI and government should have initiated steps to repose stakeholders’ confidence in the banking system.

Referring to the government’s announcement that it will privatise two public sector banks in FY22, Tuljapurkar said this announcement has triggered speculation in the market and created confusion in the minds of customers.

According to reports, the government could weigh privatisation of Indian Overseas Bank (IOB), Bank of Maharashtra (BoM), Bank of India (BoI) and Central Bank of India (CBoI). It may zero-in on two of these four banks for privatisation.

“Bank of Maharashtra is identified with the common man and is showing extraordinary performance. Financials of the bank are strong.

“The unions in the bank are proactive and will continue their efforts in pursuing the government to maintain its public sector character,” said Tuljapurkar.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

All you need to know about the potential privatisation of 4 mid-sized banks, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Share prices of Bank of India, Bank of Maharashtra, Indian Overseas Bank and Central Bank of India rallied more than 10 percent each in early trade on Tuesday amid reports that the government may privatise these banks.

Government has shortlisted these four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, three government sources said. Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April, the officials said. The shortlist has not previously been reported.

The government is considering mid-sized to small banks for its first round of privatisation to test the waters. In the coming years it could also look at some of the country’s bigger banks, the officials said.

Bank of India has a workforce of about 50,000 and Central Bank of India has 33,000 staff, while Indian Overseas Bank employs 26,000 and Bank of Maharashtra has about 13,000 employees, according to estimates from bank unions.

PM Modi’s office initially wanted four banks to be put up for sale in the coming fiscal year, but officials have advised caution fearing resistance from unions representing the employees. The actual privatisation process may take 5-6 months to start, one of the government sources said.

To facilitate the privatisation of public sector banks, the government is likely to bring amendments to two legislations later this year. Amendments would be required in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 for privatisation, sources said.

The government hopes that the Reserve Bank of India, the country’s banking regulator, will soon ease lending restrictions on Indian Overseas Bank after an improvement in the lender’s finances that could help its sale.

“The government should consider what gives it a better pricing without compromising its long-term goal of financing the growing Indian economy,” said Devendra Pant, chief economist at India Ratings, the Indian arm of Fitch ratings agency.

(With Inputs from Reuters)



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Bank of Maharashtra ties up with LoanTap Credit for co-lending to MSMEs

Personal Finance

[ad_1]

Read More/Less


To start with, the ticket size would be at around Rs 3 lakh and will be enhanced depending on performance.

Bank of Maharashtra on Monday said it has entered into a co-lending agreement with Pune-based non-banking financial company LoanTap Credit Products for MSME loans.

LoanTap offers a range of business, vehicle and personal loans to the underserved segment. BoM has a tie-up with fintech company Atyati Technologies, but it was limited to sourcing proposals. With LoanTap, the bank would be getting into faceless sanction and disbursals using mobile app.

A S Rajeev, MD & CEO of BoM, said the co-lending system was introduced by the RBI in the wake of the liquidity crisis at NBFCs to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention or visiting bank branches.

To start with, the ticket size would be at around Rs 3 lakh and will be enhanced depending on performance.

The co-lending model would enable the bank to meet its priority sector lending target.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

BoM ties up with LoanTap Credit for co-lending to MSMEs, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


State-owned Bank of Maharashtra on Monday said it has entered into a co-lending agreement with the Pune-based non-banking financial company LoanTap Credit Products, for MSME loans. Under the co-lending model, the bank will have an exposure of up to 80 per cent while the rest will be borne by the LoanTap, the bank said in a release.

“Co-lending is the system introduced by RBI in the wake of the liquidity crisis at non-banking finance companies to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost,” the bank’s managing director and CEO A S Rajeev said.

In September 2018, RBI had come out with a co-origination model between banks and NBFCs for providing credit to the priority sector. Last year in November, RBI rechristened the scheme as Co-Lending Model (CLM), and revised the terms to provide greater operational flexibility to the lending institutions.

BoM’s executive director Hemant Tamta said the co-lending model shall help the bank to meet the priority sector lending target. It will be beneficial for all NBFCs having wider outreach and customers, who will be facilitated with low cost credit from banks.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention, from on-boarding of customers to loan disbursement and monitoring.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Punjab & Sind Bank, BoM and BoI are likely privatisation candidates

Banking & Finance

[ad_1]

Read More/Less


Lack of interest among potential buyers remains a key concern given the structure of these banks.

The market is betting on Punjab & Sind Bank, Bank of Maharashtra and Bank of India as the likely candidates for the finance minister’s ambitious bank privatisation plan. In her Budget speech, finance minister Nirmala Sitharaman said the government planned to privatise two sate-run banks, other than IDBI Bank. Analysts believe that the likely candidates will be from the pool of banks which were not part of the merger process. The government had earlier allowed merger of 13 banks into five banks.

Anil Gupta – vice-president and sector head, financial sector ratings, ICRA, said Punjab and Sind Bank and Bank of Maharashtra looked probable candidates for privitisation. Of the six banks kept out of merger, Indian Overseas Bank, Central Bank and UCO Bank are under PCA (prompt-corrective action), he explained. The Reserve Bank of India had kept the three banks in the PCA framework after a massive asset quality deterioration, losses in the books and lower capital levels. Gupta said PCA banks were unlikely to be offered for privatisation due to poor investor demand.

Leaving State Bank of India and five merged banks, there are six public sector banks in the banking system. The six banks include Bank of India, Punjab and Sind Bank, Bank of Maharashtra, Indian Overseas Bank (IoB), Central Bank of India and Uco Bank. Gupta also said the government was unlikely to consider privitisation of Bank of India due its large size. “The government may want to test the water with smaller banks first,” he added.

According to JM Financial, “While the details are awaited, we believe the most likely candidates will be from the pool of banks which were not part of consolidation. While these candidates are small and are not expected to provide any material resources to the government, we believe that this is a step in the right direction and can act as a test case for privatisation of other major public sector banks in future.”

In a note to its clients, Kotak Institutional Equities said the task of privatising two PSU banks may be difficult to achieve but could result in more privatisations, if successful. Lack of interest among potential buyers remains a key concern given the structure of these banks, Kotak said.

In an interview with CNN News 18, Niramala Sitharaman said the government wanted more public sector banks which are functionally strong, professionally managed and can meet the demands of growing aspirational India. “If I am going to be sitting around with such public sector banks which are just not in a mood or a position to stand up, is it right to pour tax-payers money into such banks? When there may be buyers who can buy and run it efficiently,” she said.

The government has proposed to introduce required legislative amendments for privatisation of two PSBs in the Budget session itself.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

5 Comments , , , ,

BoM Q3 net up 14% to Rs 154 cr helped by improved asset quality and higher interest income

Personal Finance

[ad_1]

Read More/Less


The bank’s gross NPAs as on December 31, 2020, were 7.69% against 16.77% on December 31, 2019, while net NPAs reduced to 2.59% in the quarter under review against 5.46% in the same period last year.

Bank of Maharashtra (BoM) on Tuesday reported 13.91% year-on-year growth in net profit for the quarter ended December 2020 to Rs 154 crore. The rise in net profit was driven by 10.12% y-o-y growth in net interest income to Rs 1,306 crore coupled with net interest margin (NIM) improving to 3.06%. BoM MD & CEO AS Rajeev said it was for the first time in four years that the bank had crossed the NIM of 3%.

The bank’s gross NPAs as on December 31, 2020, were 7.69% against 16.77% on December 31, 2019, while net NPAs reduced to 2.59% in the quarter under review against 5.46% in the same period last year. The bank has made a cumulative Covid-19 provision of Rs 955 crore. According to the Supreme Court order, the bank has not classified these accounts as NPAs but had made additional provision of Rs 150 crore, of which Rs 30 crore was in the third quarter.

Its cost to income ratio had gone down slightly and this was mainly because of a one-time expenditure of Rs 230 crore on wage arrears payable to retired employees and retirement benefits contribution, which was completely absorbed in the December quarter, the MD said.

Rajeev said the bank’s CASA deposits improved by 300 basis points to 50.91%, while provision coverage ratio improved to 90%. There was 22% growth in the retail, agriculture and MSME advances during the quarter. BoM’s retail advances grew 28.89% to Rs 27,540 crore while MSME advances were up 26.31% to Rs 20,304 crore during the quarter under review. According to the MD, this was not just pent up demand or festival sales. The bank expects growth in retail loans to continue in the fourth quarter of FY21 and even improve further. Banks have benefitted from the withdrawal of NBFC from the market, Rajeev said. This has helped in retail growth, so compared to 16%-18% growth last fiscal year, they had seen 26% to 28% growth in the retail loans this year, he added. He expects the NBFCs to bounce bank once the Covid situation is over, but this window of opportunity is available to the banks for another five to six months, he said.

In addition to growth in retail demand, investment in infrastructure and new projects had started pouring in, adding to the optimism, he said. With the government’s PLI scheme, the BoM MD expects a 2-3% increase in the share of corporate loans. Corporate loans now account for 40% of the bank’s advances.

The BoM board has already approved capital raising plans with Rs 2,000 crore to be raised through bonds and Rs 1,000 crore through equity, Rajeev said. During Q4FY21, the bank would look at raising either Tier -I or Tier-II capital of Rs 500 crore through bonds to be utilised next year, he said. They will look at raising equity next year, depending on the situation.

The bank’s total business increased 13.15 % to Rs 2,66,875 crore with total deposits increasing 14.08% to Rs 1,61,971 crore and gross advances were up 11.74 % to Rs 1,04,904 crore. The bank’s net revenues in Q2FY21 grew 15% on y-o-y basis to Rs 1,572 crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Bank of Maharashtra Q3 net profit rises 14 per cent to ₹ 154 crore

Banking & Finance

[ad_1]

Read More/Less


Bank of Maharashtra (BoM) reported a 14 per cent increase in net profit at ₹ 154 crore in the third quarter ended December 31, 2020 against ₹135 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) increased by 10 per cent to ₹1,306 crore ( ₹1,186 crore in the year ago period).

Total non-interest income, including fee based income, trading income and other income, was up 29 per cent to ₹ 570 crore (₹ 442 crore).

Gross non-performing assets (NPAs) declined to 7.69 per cent of gross advances as at December-end 2020 vis-a-vis 8.81 per cent as at September-end 2020.

In absolute terms, GNPAs declined by ₹ 1,033 crore in the reporting quarter.

NPAs

Net NPA position improved to 2.59 per cent of net advances as at December-end 2020 vis-a-vis 3.30 per cent as at September-end 2020.

The Pune-headquartered public sector bank saw a 54 per cent quarter-on-quarter (QoQ) increase in the number of accounts moving to the “special mention account (SMA) 2” category (principal or interest payment overdue between 61-90 days) to 14,022, with the outstanding amount rising 106 per cent QoQ to ₹ 1,419 crore.

The Bank, in a statement, said provision coverage ratio improved to 90 per cent as on December-end 2020 against 87 per cent as on September-end 2020.

Advances increased by 12 per cent year-on-year to ₹ 1,04,904 crore as at December-end 2020. Within the advances, retail advances and MSME advances were up 29 per cent and 26 per cent, respectively.

Total deposits increased by 14 per cent to ₹ 1,61,971 crore. The share of low cost current account, savings account (CASA) deposits improved to 50.91 per cent of total deposits from 50.51 per cent in the preceding quarter.

[ad_2]

CLICK HERE TO APPLY

Leave a comment ,

Centre mulls ‘bad bank’, PSB privatisation for Budget FY22, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


New Delhi, The Union Government is considering several policy measures for the Indian banking sector, including setting up of a bad bank and privatisation of few state-run banks.

A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. Even though a custodian for the stresssed assets has been provisioned for long, but, it has never materialised.

According to sources, there are talks of reducing the number of public sector banks (PSBs) to four from the current 12.

This is likely to be part of the government’s new strategic disinvestment policy, which is also likely to include the insurance sector.

This would be a major move towards meeting the government’s disinvestment targets.

The most significant feature of the upcoming policy would be the inclusion of financial sectors under its ambit.

Though privatisation is on the cards, further recapitalistion of PSBs cannot be ruled out. According to people in the know, the government may go ahead with another round of recapitalisation, to enable the banks create a strong buffer amid the pandemic.

Last year, the Niti Aayog suggested the privatisation of three banks – the Punjab & Sind Bank, UCO Bank and the Bank of Maharashtra, according to people in the know.

Further, the talks of stake sale in banks under the new policy, came after the merger of 10 public sector banks came into effect on April 1, 2020.

With the merger coming into effect, India currently has 12 public sector banks, down from 27 in 2017.

During the announcement of the Aatmanirbhar Bharat economic package in May last year, Finance Minister Nirmala Sitharaman had said that the Centre will come up with a new Public Sector Enterprise Policy, and open up all sectors to the private sector.

She had said that under the new policy, a list of strategic sectors requiring presence of PSEs in public interest will be notified and in these sectors, at least one enterprise will remain in the public sector and the private sector will also be allowed.

In the Union Budget for FY21, the government had set a disinvestment target of Rs 2.1 lakh crore. The target has, however, been described as ambitious by many as the Centre was not able to reach anywhere near its target in the last fiscal.

The already lagging disinvestment plans have been severely impacted by the ongoing pandemic.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,
1 … 4 5 6 7