Public sector lender Bank of Maharashtra on Thursday reported a 187% year-on-year rise in its net profit to Rs 165 crore for the quarter ended March 31, 2021, aided by a 35% development in net interest earnings (NII) to Rs 1,383 crore.
The net interest margin enhanced to 3.11% compared to 2.41% in the March 2020 quarter.
There was also a one-time other earnings of Rs 508 crore on account of recovery from the Bhushan Power account. This quantity was written off earlier but a one time recovery was made in the course of the March quarter. The bank saw a 215% enhance in non-interest earnings to Rs 1,235 crore.
AS Rajeev, MD & CEO, BoM, mentioned the bank’s asset high quality had enhanced with decline in gross NPA to 7.23% from 12.81% and net NPA from 4.77% to 2.48%. Gross NPA was down to Rs 7,779.68 crore from Rs 12,152 crore although net NPA was at Rs 2,544.3 crore from Rs 4,145 crore.
There has been a reduction in NPAs in all the sectors, like agriculture and retail, as properly as corporate loans, Rajeev mentioned. Agriculture had a fantastic year, so recoveries had been fantastic and retail loans also saw comparatively greater recoveries, he mentioned.
Taking the second wave into consideration, the bank had decided to make added COVID provisions of Rs 583 crore for any contingencies, he mentioned. But Rajeev did not count on any adverse effect on FY22 functionality due to the fact of the second wave and the bank would be capable to carry out properly this economic year as the nation was greater ready to deal with this.
Rajeev mentioned the bank plans to raise capital of up to Rs 5,000 crore by way of adhere to-on public offer you, QIP, rights challenge or bonds. This could come about in second or third quarter of FY22 based on industry situations.
BoM reported a 35% development in MSME lending, 26% development in retail lending and 12% development in agriculture loans in the course of the March quarter.
BoM’s total enterprise as on March 31 was up 15% to Rs 2,81,659 crore, with deposits increasing by 16% to Rs 1,74,006 crore and advances going up by 18% to Rs
1,07,654 crore.