IN the quarter ended June 2018, the Bank of Maharashtra has recorded growth to the tune of 23.92 per cent, as per the financial results for Quarter ended June 30, 2018, announced by the Board of Directors.
Speaking on the occasion, A C Rout, executive director of the Bank stated, “The bank has focused all its efforts on recovery and improvement in asset quality. In the quarter ended June 2018, the Bank recovered NPAs of Rs 858 crore. During the period the Bank has reported 23.92 per cent growth in Net Interest Income as compared to the same period the previous year. The same was possible due to effective liability management.”
Elaborating on future plans of the Bank, Rout said, “We are in the process of rebalancing our asset portfolio with focus on retail, agri, and MSME (RAM) sectors for diversification of risk. The Bank is committed to the reforms agenda initiated by the Govt of India for PSBs and the positive results can be seen in coming quarters.”
Key Performance Highlights
- Net interest income of the Bank in the quarter ended June 30, 2018, increased by 23.92 per cent Y-o-Y to Rs 858.49 crore from Rs 692.80 crore in the quarter ended June 30, 2017.
- Net Interest Margin (NIM) improved to 2.33 per cent for Q1 of FY 2018-19 as compared to 1.87 per cent in Q1 of FY 2017-18.
- Operating Profit for the quarter ended June 30, 2018, stood at Rs 470.32 crore as against Rs 533.48 crore in June 2017 quarter.
- Operating Expenses have come down marginally for the quarter ended June 30, 2018, as compared to the quarter ended March 31, 2018.
- On the basis of sustained high CASA deposit ratio cost of deposit has come down by 59 basis points to 4.99 per cent in June 2018 quarter from 5.58 per cent in June 2017 quarter.
- Interest expenses for the June 30, 2018 quarter declined by 13.16 per cent to Rs 1782.06 crore as compared to Rs 2052.09 crore in the corresponding period of previous year.
- Non-Interest income stood at Rs 346.55 crore in the quarter ended 30.06.2018 as compared to Rs 464.95 crore in the corresponding quarter of previous year. The reduction in non-interest income was due to lower profits from the sale of investment by Rs 104 crore in light of adverse interest rate scenario.
- Net loss of the Bank stood at Rs 1119 crore for the quarter ended for June 30, 2018, as against net loss of Rs 412.20 crore in corresponding period of previous year. For the quarter ended March 31, 2018, a net loss of the Bank stood at Rs 113.49 crore.