State-owned Bank of Maharashtra on Thursday reported a more than two-fold jump in its net profit at Rs 208.01 crore in the first quarter ended June of this fiscal on healthy interest income and a fall in bad loans. The Pune-headquartered lender had posted a net profit of Rs 101.02 crore in the same quarter of 2020-21.
Total income during Q1FY22 jumped to Rs 3,794.53 crore as against Rs 3,264.81 crore in Q1FY21, Bank of Maharashtra said in a regulatory filing. Interest income during the quarter rose to Rs 3,103.55 crore as against Rs 2,896.24 crore in year ago period. Bank's income from investment and from other sources was also higher in June quarter.
On the asset front, there was a significant improvement as the gross non-performing assets (NPAs) came down to 6.35 percent of the gross advances as of June 31, 2021, as against 10.93 percent by year ago period. Net NPAs or bad loans were also trimmed at 2.22 percent as against 4.10 percent.
In value terms, the gross NPAs stood at Rs 7,021.63 crore as of June 30, 2021, down from Rs 10,558.53 crore as of June 2020. Net NPAs were of Rs 2,352.75 crore, down from Rs 3,677.39 crore. Provisions for bad loans and contingencies were higher at Rs 650.44 crore for the quarter as against Rs 608.94 crore parked aside for June 2020 quarter.
Of this, provisions for bad loans were of Rs 500.99 crore, up from Rs 408.91 crore. Return on assets improved to 0.41 percent from 0.22 percent.
The provision coverage ratio (PCR) as of June 30, 2021 is 90.70 percent, the bank said. Further, the bank informed that it has reported 30 borrowal accounts as fraud during the April-June period of 2021-22.
"The total amount involved is Rs 392.94 crore. In respect of loans and advances classified as fraud, the bank is holding 100 percent provision," it added. On the COVID-19 situation, the bank said even as there has been an improvement in the economic activity since the easing of lockdown measures, "the slowdown may lead to a rise in the number of customer defaults and the resultant increase in the provisions there against".
Bank stock traded 2.33 percent down at Rs 23.10 apiece on BSE.