Bank of Maharashtra reported reported a 55.59% y-o-y rise in net profit for Q3FY16 to Rs 89.06 crore. Total income went up by 3.24% to Rs 3,475 crore.
The bank’s operating profit was down 12.49% to Rs 541.90 crore from Rs 619.27 crore during same time in the previous year. The lender set aside less for provisioning and contingencies during the quarter under review at Rs 345.01 crore compared to Rs 580.14 crore is made provisions for in Q3FY15, the bank had made provisions of Rs 580.14 crore.
There was better credit monitoring and lesser slippages and as a result provisioning had come down and contributed to profitability.
The bank also attributed these profits to higher non-interest income and higher CASA deposits which reduced cost of deposit.
Gross NPA during the quarter has gone up by 34.17% to R8,301 crore from Rs 6,186.66 crore. Net NPA rose by 31.18% to Rs 5,595.73 crore from Rs 4,265.55 crore. The BoM CMD, S Muhnot, said due to adverse economic conditions the net NPA stood at 5.52% and gross NPA at 7.97 %. During the previous year Q3FY15, net NPA was 4.71% whole gross was at 6.65%. “In spite of slow economic condition gross NPA percentage has been contained at 7.97%, Muhnot said. On a Q-o-Q basis net NPA has come down from 5.59% in Sept’15 by 7 bps to 5.52, he said. The bank’s capital adequacy ratio under Basel III stands comfortable at 11.50%.
The banks total business increased by 10.31% to Rs 21,922.22 crore while gross advances have gone up by 12.06 % to Rs 11219.14 crore on a Y-o-Y basis. The CASA deposits have grown by 10.17% with a rise of Rs 4,222.92 crore to a level of Rs 45,764.33 constituting 35.11% of total deposit.
The bank’s stock rose by 8.71% on the BSE to Rs 31.85.
