Bank of Maharashtra’s (BoM) standalone net profit soared 106 per cent year-on-year (y-o-y) to ₹208 crore in the first quarter ended June 30, 2021, on the back of a healthy growth in net interest income and total non-interest income. The Pune-headquartered public sector bank had reported a net profit of ₹101 crore in the year ago period.
However, BoM restructured higher quantum of advances, mainly in the retail and corporate segments, even as its asset quality, in terms of non-performing asset (NPA) ratios, showed improvement in the reporting quarter.
Net interest income (difference between interest earned and interest expended) was up 29 per cent y-o-y to ₹1,406 crore (₹1,088 crore in the year ago quarter).
Total non-interest income, comprising fee-based income, trading income and other income, jumped 87 per cent y-o-y to ₹691 crore (₹369 crore).
Net interest margin (NII/ total assets) rose to 3.05 per cent in the reporting quarter from 2.43 per cent in the year ago quarter.
All-round improvement
AS Rajeev, MD & CEO, observed that there was an all-round improvement in BoM’s performance parameters despite the first two months of the quarter witnessing localised lockdowns across the country due to the second wave of the Covid pandemic. The bank will continue to maintain net interest margin (NIM) above 3 per cent, bring down gross NPAs and net NPAs below 6 per cent and 2 per cent, respectively in FY22, he added. The bank expects credit growth to continue at 14-15 per cent.
BoM restructured advances aggregating ₹2,240 crore (₹1,048 crore in the fourth quarter/Q4 of FY21). It restructured retail advances aggregating ₹1,013 crore; corporate (₹793 crore); and MSME (₹434 crore). Under restructuring, there is usually revision in repayment terms relating to the interest or repayment period. Fresh slippages were lower at ₹840 crore (₹2,051 crore in Q4FY21).
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Gross NPA position improved to 6.35 per cent of gross advances as at June-end 2021 against 7.23 per cent as at March-end 2021. Net NPAs position too improved to 2.22 per cent of net advances against 2.48 per cent.
Gross advances increased by 14 per cent y-o-y to ₹ 1,10,592 crore on the back of about 16 per cent growth in RAM (retail, agriculture and MSME) advances and about 12 per cent growth in corporate and other advances.
Total deposits were up 14 per cent y-o-y to ₹ 1,74,378 crore, with savings deposit and current deposit growing by 22 per cent and 24 per cent, respectively.
Current account, savings account (CASA) deposits accounted for 53.04 per cent of total deposits against 49.56 per cent in the year ago quarter.
Shares of the Bank closed at ₹23.10 apiece, down 2.33 per cent over the previous close on BSE.