Pune: The city-based Bank of Maharashtra (BoM) has been incurring losses quarter after quarter but the net loss of the bank has been reduced by 93 per cent and it has come down from Rs 337 crore loss in September 2016 to Rs 23 crore in this quarter.
While talking at a press conference, MD and CEO Ravidra Marathe said that for the second quarter of the financial year 2017-2018 the asset quality and the profitability has improved.
The operating profit of the bank has gone up by 62 per cent year on year. The operating profit of the bank was Rs 427 crore in the second quarter of last year which now stands at Rs 692 crore in this quarter so there is a jump of 62 per cent in the operating profit of the bank.
Similarly for the first time in last several quarters on The Non-Performing Assets (NPA) front the total reduction in NPA is more than the slippages. In earlier quarters the slippages were more than reduction, but this quarter the total reduction in NPA is to the tune of Rs 2,000 crore and the total addition to NPAs was only Rs 1,259 crore. So there is a reduction of Rs 800 crore in the NPAs. The delinquency ratio has been brought down from 3.91 per cent in March quarter to 1.29 per cent this quarter. The SMA advances 1 and 2 have been dropping quarter after quarter. As against 11 per cent of the SMA advances dropping to NPA in June in this quarter only 7 per cent of the SMA account has slipped to NPA category.
The Gross NPA has come down from Rs 18,049 crore in June 2017 to Rs 17,239 crore in September 2017 as well as the net NPA in absolute terms has come down in this quarter. The advances level came down in September over June, but inspite of the fall in the advances level the gross NPA ratio has been brought down from 18.59 per cent to 18.54 per cent quarter over quarter. Similarly, the net NPA number has come down from Rs 11,268 crore to Rs 10,969 crore, the net NPA ratio stands at 12.66 per cent which is marginally over the June number of 12.48 per cent. The provision coverage ratio has improved from 42 per cent last year September to 49.79 per cent this quarter.
The CASA has been slightly increased to 44.26 per cent. The total deposit growth has been to the tune of 4 per cent and that is mainly on account of CASA deposits which have grown from 15 per cent.
Marathe said, “We are today focused on retail and agriculture sector where we would like to grow our advances. 68 per cent Aadhaar cards have been linked to the BoM and we are trying to increase the number.”
