Public sector lender Bank of Maharashtra posted profit before tax (PBT) of Rs 101.13 in the first quarter ended June 2020 (Q1FY21). It had posted a pre-tax loss of Rs 262.27 crore in quarter ended June 2019 (Q1FY20).
The bank’s net profit for the quarter under review rose to Rs 101.02 crore from a net profit of Rs 81.09 crore in Q1FY20.
The bank’s managing director and chief executive, A S Rajeev, said the rise in Net Interest Income (NII) and a decline in provisions and contingencies helped the bank improve the net profit in the quarter (Q1FY21).
The share of the Pune-based bank closed 2.15 per cent higher at Rs 11.87 per share on BSE.
The NII grew by 9.14 per cent on a year-on-year basis from Rs 997 crore in Q1FY20 to Rs 1,088 crore in Q1FY21.
The provisions (including for NPAs) and contingencies declined to Rs 608.9 crore in Q1FY21 from Rs 920.7 crore in Q1FY20.
The bank said it made a Covid-19 related provision of Rs 275 crore in Q1FY21. The lender holds Covid-19 related cumulative provisions of Rs 425 crore, which is more than the norms prescribed by Reserve Bank of India.
The provisions coverage ratio (PCR) improved to 85.62 per cent in June 2020 from 81.24 per cent in June 2019. The same was 83.97 per cent in March 2020, the bank said in a statement.
The gross non-performing assets (GNPAs) fell to 10.93 per cent in Q1FY21 from 17.9 per cent in Q1FY20. The GNPA were at 12.8 per cent at the end of March 2020.
The net NPAs declined to 4.1 per cent in June 2020 from 5.98 per cent in June 2019. The net NPAs were at 4.77 per cent in Mach 2020.
The total deposits rose by 10.11 per cent to Rs 1,52,987 crore in June 2020 and advances grew by 3.86 crore to reach Rs 96,621 crore as on June 30, 2020.
The bank will open 200 more branches across the country, especially in those districts where it lacks presence, by December 2020, to expand network and grow business, Rajeev said.
The bank’s capital adequacy ratio (CAR) stood at 13.21 per cent as on June 30, 2020 with Tier I at 10.23 per cent.