Bank of Maharashtra reports Rs 27 crore net profit in Q2

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Bank of Maharashtra reports Rs 27 crore net profit in Q2

State-owned Bank of Maharashtra Tuesday reported a net profit of Rs 27 crore for the quarter ended September 2018.

The bank had posted a net loss of Rs 23.24 crore in the July-September period of previous fiscal and Rs 1,119 crore loss in the first quarter ended June of the current fiscal.

Total income fell to Rs 3,192.80 crore during the quarter ended September as against Rs 3,303.62 crore in the same quarter of 2017-18, the bank said in a regulatory filing.

The bank’s asset quality remained poor with gross non-performing assets (NPAs) rising to 18.64 percent of gross loans as on September 2018 as against 18.54 percent in the year-ago period.

In absolute value, the gross NPAs stood at Rs 16,872.84 crore by end of September 2018 as against Rs 17,239.27 crore in the same quarter a year ago.

Net NPA ratio, however, came down at 10.61 percent of the net advances from 12.68 percent a year ago. In value terms, the net NPAs were Rs 8,742.86 crore by the end of the second quarter, 2018-19 as against Rs 10,990.34 crore by the same quarter of 2017-18.

The bank hiked the provisions for bad loans to Rs 941.71 crore in the July-September period of this fiscal from Rs 835.12 crore year ago.

The bank said it has sold advances amounting to Rs 19.40 crore to asset reconstruction company at a loss of Rs 5.85 crore during the half year ended September 2018.

“During the half year ended September 30, 2018, loans and advances amounting to Rs 941.27 crore (Rs 894.77 crore during the quarter) have been classified as fraud in terms of RBI circular of April 2015 and April 2016,” it said.

The bank has made provision of Rs 845.46 crore for the quarter ended September in respect of such accounts, and the balance amount of Rs 95.81 crore will be in line with the RBI direction for the coming quarters.

It also said that the RBI levied a penalty of Rs 1 crore on the bank in the second quarter due to delay in reporting of fraud in respect of the borrower account.

The shares of the bank were trading 16.44 percent higher at Rs 13.60 apiece on the BSE.

Also see : The Ramco Cements Q2 down 32% to Rs 114.47 cr

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