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Monday, November 10, 2014

Bank of Maharashtra net surges

Robust cash recoveries and upgradation of assets helped Bank of Maharashtra log a 247 per cent jump in net profit in the second quarter ended September 30, 2014.

The bank recorded a net profit of Rs 163 crore , compared with
Rs 47 crore in the year-ago period.

The bank made cash recoveries of
Rs 217.51 crore (Rs 89.15 crore in the year-ago period). It saw upgradation in assets of Rs 425.92 crore (Rs 118.61 crore). Net interest income (the difference between interest earned and expended) was up 13 per cent at Rs 992 crore (Rs 876 crore).

Non-interest income, which includes profit from the sale of investments and recovery in written-off accounts, rose 21 per cent to
Rs 222 crore (Rs 183 crore).

Sushil Muhnot, Chairman and Managing Director, said the bank is in a consolidation mode, whereby it has de-grown the corporate loan book and stepped up loans to the retail, agriculture and MSE segments.

The bank is focusing on high-yielding loans and is also shedding high-cost deposits, he added.

Though the bank managed to make handsome recoveries, the net rise in NPAs, post-reduction in bad loans, was
Rs 589 crore.

Muhnot said his bank will mop up about
Rs 500 crore by issuing Basel III-compliant additional Tier I bonds in the next couple of months.

Source : The Hindu


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