Bank of Maharashtra net profit jumps 103% to Rs 264 crore in Sept quarter

The Bank of Maharashtra on Thursday reported a 103 per cent jump in its standalone net profit to Rs 264 crore in the September 2021 quarter, helped by healthy growth in net interest income.

The lender had reported a standalone profit after tax of Rs 130 crore in the same quarter of the previous fiscal.

The bank's performance in the July-September 2021 period was good despite the pandemic, the bank's Managing Director and CEO A S Rajeev said.

"One major reason for higher profit is growth of 34 per cent in NII (net interest income). Our core performance has improved," he told reporters.

The bank's recovery from written-off accounts stood at Rs 340 crore, including Rs 258 from the DHFL resolution, in the quarter, and this also resulted in higher profit.

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During the April-September period of this fiscal, the bank reported a 104.11 per cent jump in the net profit at Rs 472 crore as against Rs 231 crore for HYFY21.

In Q2 FY2022, NII grew 33.84 per cent on a year-on-year basis to Rs 1,500 crore as against Rs 1,120 crore in the year-ago quarter.

Non-interest income rose 22.61 per cent to Rs 493 crore.

Net interest margin (NIM) improved to 3.27 per cent as on September 30, 2021.

Gross non-performing accounts (NPA) declined to 5.56 per cent from 8.81 per cent in the corresponding quarter of the previous fiscal. Net NPA also reduced to 1.73 per cent as against 3.30 per cent.

Provision coverage ratio improved to 92.38 per cent as against 87.15 per cent. It holds a cumulative COVID-19 provision of Rs 973 crore as of September-end.

Banks' recovery and up-gradation stood at Rs 645 crore from Rs 556 crore in the year-ago period.

Fresh slippages in the quarter were Rs 553 crore.

The lender said Srei Infrastructure, where it has an exposure of Rs 550 crore, was identified as an NPA in the quarter and the account is fully provided for.

Total basel-III capital adequacy ratio improved to 14.67 per cent with common equity tier-1 ratio of 11.38 per cent for Q2 FY22.

Gross advances increased 11.44 per cent to Rs 115,235 crore and total deposits were up by 14.47 per cent to Rs 181,572 crore.

Rajeev said the bank expects 14-15 per cent credit growth during the current fiscal.

The bank's scrip was trading at Rs 21.90 apiece, up 4.53 per cent on the BSE.