BoM reports 25 per cent growth
Bank of Maharashtra has reported 25 per cent growth in the
operating profit, as compared to the quarter ended March 31, 2017.
Pune: With a greater focus on recovery of Non Performing Assets (NPA), Bank of Maharashtra has seen a 200 per cent rise in cash recovery in the first quarter of 2017-18. In this quarter, BoM has reported 25 per cent growth in operating profit, as compared to the quarter ended March 31, 2017.
Speaking about the quarter-end results, Ravindra Marathe, Managing Director and CEO of BoM, said that in line with the turnaround plan for the bank, the bank has recovered Rs 630 crore, as compared to the Rs 201 crore recovered in the first quarter of 2016-17. “The bank has shown consistent efforts in arresting fresh slippages, which have come down to Rs 1,626 crore in June 2017 quarter, as compared to Rs 3,552 crore during the quarter ending in March 2017. As on June 30, net NPAs stood at Rs 11,259 crore,” he said.
He said that six cases have been forwarded to National Company Law Tribunal (NCLT) from BoM. “Going to NCLT is building pressure on the borrowers to fall in line and pay the outstanding. The top 10 borrowers form 50 per cent of the NPAs with BoM,” he said.
Elaborating on the performance of the bank, Marathe said that the operating profit for June 2017 quarter saw a 16.30 per cent rise Year-on-Year (Y-o-Y) and a 25 per cent increase in Q-o-Q basis. “Non interest income including commission, exchange, brokerage and others saw a 61.50 per cent rise Y-o-Y to Rs 465 crore, while the operating expense reduced by 10 per cent Y-o-Y. Interest expenses also saw a drop by 10.46 per cent as compared to the corresponding period last year,” he said.
He said that the bank saw an increase in retail advances in their attempt to limit corporate advances. “Due to the conscious decision to reduce corporate advances, the advances level has marginally reduced from Rs 1,01,537 crore as on March 31 this year, to Rs 97,096 crore on June 30. Consolidation of performance is the focus due to the industrial slowdown. Retail advances have seen a 26.54 per cent growth Y-o-Y on account of loans to the housing sector (28.01 per cent) and vehicle loans (38.75 per cent),” he said.