MUMBAI : A fall in other income coupled with deteriorating asset quality dragged Bank of Maharashtra’s net profit down 56% on-year to 1.18 bln rupees for quarter ended Jun 30.
While interest earned by the bank rose to 30.95 bln rupees from 27.49 bln rupees a year ago, other income fell to 1.90 bln rupees from 2.25 bln rupees. With expenditure in Apr-Jun increasing to 28.15 bln rupees from 22.75 bln rupees, the state-owned lender saw a 32.6% on-year decline in operating profit.
The rise in expenditure was due to an increase in interest expended, as well as higher operating expenses compared with the previous year. As on Jun 30, the gross NPA ratio stood at 4.23% rising sharply from 1.80% a year ago.
Net NPAs at the end of June also surged to 2.94% from 0.80% in the corresponding quarter last year.
The overall provisions made by the bank declined to 2.36 bln rupees from 2.69 bln rupees a year ago. However, during the quarter the bank provided 313.50 mln rupees for pending wage revisions, it said in a release. The bank’s provision coverage ratio stood at 49.73% as on Jun 30 compared to 56.15% as on Mar 31. Bank of Maharashtra’s capital adequacy ratio under Basel III was at 10.75% as on Jun 30.