Maharashtra Bank Q2 profit rises 13 per cent to Rs 130 crore; bad loans dwindle

NEW DELHI: Bank of Maharashtra on Monday reported 13.4 per cent rise in consolidated net profit at Rs 130.44 crore for the quarter ended September 30, 2020. The Pune-headquartered lender had posted a net profit of Rs 115.05 crore for the second quarter of 2019-20.Income increased to Rs 3,319.34 crore during the quarter under review as against Rs 3,296.28 crore in the year-ago period, Bank of Maharashtra said in a regulatory filing.

The consolidated financial results of the group comprise the results of Maharashtra Bank (holding company), Maharashtra Executor and Trustee Company Pvt Ltd and Maharashtra Gramin Bank (associate company).

The lender was able to reduce gross non-performing assets (NPAs) to 8.81 per cent of the gross loans at September-end 2020 from 16.86 per cent by the same period a year ago.

In value terms, gross NPAs came down to Rs 9,105.44 crore from Rs 15,408.51 crore. Likewise, net NPAs or bad loans came down to 3.30 per cent (Rs 3,219.90 crore) from 5.48 per cent (Rs 4,406.56 crore).

Provisions for bad loans and contingencies for the second quarter, however, were raised to Rs 420.92 crore from Rs 293.70 crore reserved for the year-ago period. In June quarter, provisions were Rs 608.94 crore.

The lender said it changed the method of recognising income from locker rent in the quarter, otherwise the profit for the half year ended September would have been more by Rs 15.01 crore.

"The bank holds 100 per cent provision in respect of loans and advances classified as fraud during the quarter ended September 30, 2020,"it added.

The lender said it made provisions of Rs 500 crore related to COVID-19 during the period under review and the cumulative provision at the end of second quarter stood at Rs 925 crore. Bank of Maharashtra stock was trading at Rs 11.90 on BSE, up 6.92 per cent from previous close.