Bank of Maharashtra Q2 profit jumps 41.5% as bad loans decline
Bank of Maharashtra posted a 41.5% year-on-year rise in Q2 net profit to Rs 2,310 crore, supported by stronger income, deposit and credit growth, improved asset quality and a return on assets of 2.02%.
By Atmadip Ray, ET Bureau |
Agencies
Bank of Maharashtra’s second-quarter profit rose 41.5% to Rs 2,310 crore, as higher income, strong credit growth and declining bad loans boosted performance.
Bank of Maharashtra reported a 41.5% jump in second quarter net profit at Rs 2,310 crore as compared with Rs 1,633 crore in the year ago period, backed by business growth and asset quality improvement.
The bank's return on assets improved to 2.02 % for the second quarter from 1.82% a year prior.
"We are now in the 2% club and we will take steps to maintain RoA at 2% plus," managing director Nidhu Saxena said.
The state-owned lender's operating profit stood 31% higher at Rs 3,369 crore against Rs 2,574 crore for the corresponding quarters, riding on 22% increase in net interest income at Rs 3,954 crore and 34% surge in non-interest income at Rs 1129 crore.
The provision and contingencies were lower at Rs 654 crore for the quarter against Rs 756 crore a year prior even after making an additional Rs 500 crore provision as a preparation for the credit loss regime from next fiscal.
Its gross non-performing assets ratio improved to 1.25% at the end of September from 1.72% a year prior. Net NPA ratio improved to 0.12% from 0.18%. It maintains provision coverage ratio around 98%.
The bank's total deposits increased by 21.5% year-on-year to rs 3.76 lakh crore while credit grew by 29.6% to Rs 3.29 lakh crore at the end of September.
Private sector lender Tamilnad Mercantile Bank reported a 42% year-on-year jump at Rs 451 crore for the July-September quarter as against Rs 318 crore in the year ago period. Its operating profit stood 42% higher at Rs 642 crore against Rs 452 crore. The bank's asset quality improved with gross non-performing assets falling to 0.61% at the end of September from 1.01% a year prior. Net NPA improved to 0.14% from 0.26% over the same period.
Dhanlaxmi Bank reported a net profit of Rs 48.6 crore for the second quarter against Rs 23.2 crore in the year-ago period, registering a 110% surge. Operating profit for the quarter stood at Rs 69.8 crore, growing 148% year-on-year over Rs 28.2 crore. Its asset quality improved with gross non-performing assets falling to 1.76% at the end of September from 3.1% a year prior. Net NPA improved to 0.45% from 1.12% over the same period.
The bank's return on assets improved to 2.02 % for the second quarter from 1.82% a year prior.
"We are now in the 2% club and we will take steps to maintain RoA at 2% plus," managing director Nidhu Saxena said.
The state-owned lender's operating profit stood 31% higher at Rs 3,369 crore against Rs 2,574 crore for the corresponding quarters, riding on 22% increase in net interest income at Rs 3,954 crore and 34% surge in non-interest income at Rs 1129 crore.
The provision and contingencies were lower at Rs 654 crore for the quarter against Rs 756 crore a year prior even after making an additional Rs 500 crore provision as a preparation for the credit loss regime from next fiscal.
Its gross non-performing assets ratio improved to 1.25% at the end of September from 1.72% a year prior. Net NPA ratio improved to 0.12% from 0.18%. It maintains provision coverage ratio around 98%.
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The bank's total deposits increased by 21.5% year-on-year to rs 3.76 lakh crore while credit grew by 29.6% to Rs 3.29 lakh crore at the end of September.
Private sector lender Tamilnad Mercantile Bank reported a 42% year-on-year jump at Rs 451 crore for the July-September quarter as against Rs 318 crore in the year ago period. Its operating profit stood 42% higher at Rs 642 crore against Rs 452 crore. The bank's asset quality improved with gross non-performing assets falling to 0.61% at the end of September from 1.01% a year prior. Net NPA improved to 0.14% from 0.26% over the same period.
Dhanlaxmi Bank reported a net profit of Rs 48.6 crore for the second quarter against Rs 23.2 crore in the year-ago period, registering a 110% surge. Operating profit for the quarter stood at Rs 69.8 crore, growing 148% year-on-year over Rs 28.2 crore. Its asset quality improved with gross non-performing assets falling to 1.76% at the end of September from 3.1% a year prior. Net NPA improved to 0.45% from 1.12% over the same period.
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