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Bank of Maharashtra reports net profit for first time in 11 quarters

Updated : October 30, 2018 04:39:35 IST

State-owned Bank of Maharashtra on Tuesday said it reported a net profit for the first times in 11 quarters.

Bank of Maharashtra reported a net profit of Rs 27 crore for the quarter ended September 2018. The bank had posted a net loss of Rs 23.24 crore in the July-September period of previous fiscal and Rs 1,119 crore loss in first quarter ended June of the current fiscal.

Total income fell to Rs 3,192.80 crore during the quarter ended September as against Rs 3,303.62 crore in the same quarter of 2017-18, the bank said in a regulatory filing.

In an interview to CNBC-TV18, AC Rout, executive director, said it was a defining quarter as after ten quarters of continuous losses, Bank of Maharashtra is in profit zone.

Rout said the good numbers were more driven due to recovery performance, focus on non-interest income, containing expenses and managing liabilities.

With regards to asset quality, he said slippages were contained at Rs 1,365 crore against Rs 2,071 crore quarter on quarter and the SME accounts that were around Rs 13,231 crore last year same quarter were down at Rs 5,429 crore this quarter.

He said NCLT list-1 provision coverage is at 80 percent and NCLT list-2 provision coverage ratio is at 72 percent, "In other NCLT cases, it's at over 60 percent."

With regards to frauds in some accounts, Rout said Bank of Maharashtra has been adequately provided as per the RBI guidelines. Moreover, the bank has scrutinised all accounts above ticket size of Rs 50 crore.
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