The state-owned Bank of Maharashtra recorded a more than two-fold improvement in its consolidated net profit for the quarter ended March, to Rs 355 crore, supported by a decrease in bad loan proportions, which necessitated less provisioning, as per PTI report.

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In the previous fiscal year, the Pune-based institution had a net profit of Rs 165.23 crore.

According to PTI, the bank's total income, however, fell to Rs 3,948.48 crore in the January-March quarter of 2021-22, compared to Rs 4,334.98 crore in the same quarter of 2020-21, according to a regulatory filing by Bank of Maharashtra, the report added.

The bank's consolidated net profit increased to Rs 1,151.64 crore in 2021-22, compared to Rs 551.41 crore in 2020-21.

The total income for the fiscal year was Rs 15,672.17 crore, up from Rs 14,497.56 crore in the previous fiscal year 2020-21.

Provisioning for bad loans and contingencies at the bank fell to Rs 365.38 crore in Q4FY22, down from Rs 1,341.26 crore the previous quarter.
Asset quality improved significantly, with Gross Non-Performing Assets (NPAs) decreasing to 3.94 percent of gross advances by March 31, 2022, down from 7.23 percent at the end of March 2021.

Net nonperforming assets, or bad loans, fell to 0.97 percent from 2.48 percent, said PTI.

Gross nonperforming assets (NPAs) were valued at Rs 5,327.21 crore, down from Rs 7,779.68 crore. Net nonperforming assets (NPAs) were Rs 1,276.57 crore, down from Rs 2,544.32 crore the previous quarter.

The bank's consolidated financial results include those of its holding company, Bank of Maharashtra, as well as subsidiaries The Maharashtra Executor and Trustee Company Pvt Ltd and Maharashtra Gramin Bank.

As of March 31, 2022, the bank's provision coverage ratio was 94.79 percent.

The lender said that with effect from the assessment year 2021-22, it has opted for the new regime of tax under Income Tax Act, 1961, said PTI.

"Consequently, during the current year, the bank has remeasured its deferred tax assets and deferred tax liabilities as of December 31, 2021, and reversed the amount of Rs 716.87 crore by debiting from profit and loss account," it said.

According to PTI, the bank's board members also approved a capital raise of Rs 5,000 crore via a follow-on public offering, rights issue, qualified institutional placement, preferential issue, or any other mode or a combination thereof, as well as the issuance of Basel III compliant bonds or other instruments.

On the BSE, the Bank of Maharashtra's stock was trading at Rs 18.25 per share, up 2.53% from the previous close.

(With PTI inputs)