State-owned Bank of Maharashtra on Monday reported a 41% growth in net profit at Rs2,310 crore for the second quarter, driven by higher core income and better asset quality.
The Pune-headquartered bank earned an interest income of Rs8,607 crore during the quarter, compared to Rs7,128 crore in the same period a year ago, bank management told reporters in a concall on Monday. Total income increased to Rs9,736 crore from Rs7,974 crore a year ago. Of which the key net interest income rose 22% to Rs3,954 crore.
Managing director Nidhu Saxena said the key profitability gauge domestic net interest margin improved to 3.98% while global NIM stood at 3.86% during the quarter.
On the FCNR deposits, Saxena said, the bank mobilised $820 million under the RBI concessional swap window and $500 million through the medium term note programme.
Overall, he said, the bank garnered $1.65 billion to support fast credit growth and there is a clear deployment plan for the funds raised through the RBI window. During the quarter, the bank booked treasury loss of Rs 32 crore as against profit of Rs 120 crore in the corresponding period of last year due to hardening interest rate.
The bank saw further improvement in asset quality with gross NPAs moderating to 1.25% of the gross loans from 1.72% a year ago. Similarly, net NPAs has come down to 0.12% from 0.18%, which is the lowest in the industry. Provision coverage rose to 98.53% from 98.34% and the capital adequacy ratio increased to 18.51 from 18.13.
Total business of the grew 25% to Rs 7,05,766 crore. However, the low cost Casa aa percentage of the total deposits declined to 46.47% from 50.35%.
