Bank of Maharashtra Q1 net jumps 106%

Bank of Maharashtra (BoM) on Thursday reported a 106% year-on-year (y-o-y) rise in net profit at Rs 208 crore in the June quarter. The bank’s net interest margin improved to 3.05% from 2.43% in the corresponding quarter last year. Its net interest income increased by 29% to Rs 1,406 crore in the quarter compared to Rs 1,088 during Q1FY21. Net non-performing assets (NPAs) fell by 188 basis points to 2.2% from 4.10% last year.
The bank’s gross NPA declined to 6.35% as on June 2021, against 10.93 % last year. The bank’s provision coverage ratio improved to 90.70% as against 85.62% last year. During the quarter, the bank made Covid-19 provision of Rs 285 crore, taking the total Covid provisions to Rs 1,000 crore.

The bank’s operating profit grew by 56% to Rs 1,110 crore. The bank’s cost of funds reduced by 58 basis points. Gross advances increased by 14.46% to Rs 1,10,592 crore in Q1FY22 y-o-y, with the retail loans growing by 19.35% to Rs 28,871 crore driven by rise in housing and vehicle loans.
Net revenues for Q1FY22 improved by 44% to Rs 2,097 crore. The bank’s fee based income increased by 68% on y-o-y basis to Rs 245 crore.

Non-interest income rose by 87% to Rs 691 crore in Q1FY22. There was an improvement in the cost to income ratio to 47.05 % for Q1FY22 as against 51.25 % for Q1FY21.
Restructuring helped the bank improve performance and is confident to continue on this track and perform even better. Big ticket advances had turned bad so the bank went through a difficult time but now they had turned around.

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