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Bank of Mahrashtra (BoM) reported a 19 per cent fall in standalone net profit at ₹58 crore in the fourth quarter ended March 31, 2020, due to a jump in loan-loss provisions, including the Covid-19 pandemic-related regulatory package.
The Pune-heaquartered public sector bank had recorded a net profit of ₹72 crore in the year-ago period.
The operating profit in the reporting quarter (Q4FY20), however, was up 19 per cent at ₹595 crore against ₹501 crore in the yea- ago period (Q4 FY19).
A ₹crore write-back in provision for taxes supported the bottomline in the reporting quarter. Net interest income (difference between interest earned and interest expended) nudged up 2 per cent to ₹1,022.50 crore (₹1.000 crore in Q4 FY19).
Other income, including commission, exchange and brokerage, recovery from written-off accounts and trading income, inched up to ₹392 crore (₹386 crore).
Loan-loss provisions soared to ₹714 crore (₹237 crore). This includes a ₹150-crore provision made towards exposure to borrowers who opted for the Covid-19 regulatory package as against the required provision (at the rate of 5 per cent) of ₹38 crore.
Non-performing asset (NPA) provision coverage ratio improved to 83.97 per cent as of March-end 2020 against 81.49 per cent as of March-end 2019.
AS Rajeev, MD and CEO, BoM, said the profit would have been higher in the reporting quarter but for the accelerated provision made towards the Covid-19 regulatory package.
As of March-end 2020, the bank’s deposits increased about 7 per cent year-on-year (yoy) to ₹1,50,066 crore. Advances inched up 1.52 per cent yoy to ₹,889 crore.
Gross NPAs declined to 12.81 per cent of gross advances as at March-end 2020 against 16.77 per cent as at December-end 2019. Net NPAs, too, declined to 4.77 per cent of net advances against 5.46 per cent.
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