Bank of Maharashtra’s net profit soars by 106 per cent to Rs 208 crore in Q1FY22 as against Rs 101 crore for Q1FY21. The public sector bank has seen a decline in net NPA and gross NPA as well.
The lender reported its net NPA at 2.22 per cent as on June 30, 2021 as against 4.10 per cent as on June 30, 2020. However, as on March 31, 2021, the net NPA was at 2.48 per cent. Commenting on NPA, Bank of Maharashtra, Managing Director and CEO AS Rajeev stated the bank is focusing on reducing their net NPA below 2 per cent and gross NPA below 6 per cent. Gross NPA of the bank declined to 6.35 per cent as on June 30, 2021 as against 10.93 per cent as on June 30, 2020.
Meanwhile, the bank’s top executive stated that there are no big NPA accounts as of now and that there is a positive movement in already recognised big NPA accounts like DHFL, DSK and others. “The bank sees no challenge in achieving its below 2 per cent NPA targets in coming quarters.”
In addition, the bank is increasingly making COVID-19 provision. In the June-ended quarter, the bank had made a COVID-19 provision of Rs 285 crore. In cumulative terms, the COVID-19 provision includes the interest of Rs 973 crore. When quizzed about this, Rajeev said, “The board is of the view that there is still some level of uncertainty. The decision to increase COVID-19 provision is made in order to strengthen the balance sheet.”
He added that if there is no eventuality then this provision will be either taken as capital or other provisions.
The lender's total business grew by 14 per cent on a year on year basis to Rs 2.84 lakh crore in Q1FY22 from 2.49 lakh crore in Q1FY21.
The bank has reported 16 per cent growth in RAM (Retail, Agri and MSME) business on a year on year basis.
The retail advances of the bank grew by 19 per cent to Rs 28, 871 crore on a year on year basis. MSME advances grew by 18 per cent to Rs 21,707 crore for Q1FY22, compared to Q1FY21.
In Q1FY22, its operating profit has shown a growth of 56 per cent to Rs 1,110 crore, compared to Rs 710 crore for Q1FY21. The bank’s net interest income (NII) grew by 29 per cent on a year-on-year basis to Rs 1,406 crore in Q1FY22 as against Rs 1,088 crore for Q1FY21.
