Bank of Maharashtra on Thursday reported a 187 per cent jump in its standalone net profit at Rs 165 crore in the quarter ended March 31, 2021, helped by higher growth in net interest income and better recoveries.
The lender had reported a profit after tax of Rs 58 crore in the corresponding quarter of the fiscal 2019-20.
For the full FY21, its net profit grew by 42 per cent to Rs 550 crore from Rs 389 crore in the year-ago period.
"It was an all round performance which helped in the profit during the quarter. NII (Net Interest Income) grew by 35 per cent and other income also improved a lot. Our recovery from prudential written off account was good at Rs 310 crore," the bank's Managing Director and CEO A S Rajeev told reporters.
NII increased to Rs 1,383 crore while fee-based income rose 22 per cent to Rs 315 crore in the latest quarter and other income went up 86 per cent to Rs 727 crore.
Net interest margin (NIM) improved to 3.11 per cent as against 2.41 per cent. Gross Non-Performing Assets (NPAs) declined to 7.23 per cent as against 12.81 per cent. Net NPA improved to 2.48 per cent from 4.77 per cent.
"Last year, we went aggressively on the recovery front. Past year was good for the agriculture sector, which led to better recovery there. Retail and MSMEs recoveries also improved despite all the challenges," Rajeev said.
Total recovery during the latest March quarter was Rs 738 crore compared to Rs 511 crore in the year-ago period. For the full fiscal, the lender's recovery stood at Rs 1,644 crore. Fresh slippages stood at Rs 2,051 crore.
As per the Reserve Bank of India's August 6 circular of one-time restructuring of loans impacted by COVID-19, the bank has restructured Rs 1,500 crore of stressed accounts, Rajeev said.
Total provisions increased to Rs 1,375 crore in the fourth quarter from Rs 538 crore last year in the same quarter. During the quarter, it made COVID-19 provision of Rs 508 crore. Bank holds cumulative COVID-19 provision, including interest, of Rs 753.47 crore.
Total Basel III capital adequacy ratio stood at 14.49 per cent with common equity tier 1 ratio of 10.97 per cent.
The lender has taken an enabling provision from its board to raise Rs 5,000 crore through debt and equity during this year. The capital will be raised in Q2 and Q3 depending on the market conditions, Rajeev said.
Total business of the bank grew by 15 per cent to Rs 2,81,659 crore.
Gross advances grew by 13 per cent to Rs 1,07,654 crore. (Retail, Agri & MSME) business grew by 25 per cent. Retail advances were up by 26 per cent to Rs 28,651 crore and MSME loans rose by 35 per cent to R. 23,133 crore.
Rajeev said the bank's corporate book stands at 37 per cent and segment at 63 per cent. Its deposits grew by 16 per cent to Rs 1,74,006 crore.
The bank is expecting a deposit growth of 14-15 per cent and credit growth of 15-16 per cent during the current financial year, he said.
The lender has kept aside Rs 700 crore of COVID-19-related provision. This is in addition to Rs 500 crore which was kept aside last year. "It will be used as and when required," stated Rajeev. At present, this has not been used anywhere.
When quizzed by reporters on privatisation, he said that there has been no official communication on this and he is only aware about it through various news reports.
The scrip of the bank closed at Rs 24.75 apiece, up 3.77 per cent on BSE.
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