Bank of Maharashtra net loss widens to ?597 crore in Q3

February 6, 2018

With loan-loss provisions jumping almost 2.5 times and other income declining 51 per cent vis-à-vis the year-ago quarter, Bank of Maharashtra’s net loss widened in the third quarter ended December 31, 2017.

The public sector bank, which was put on prompt corrective action (PCA) by the Reserve Bank of India in June 2017 in view of high net non-performing assets, reported a net loss of ?597 crore against a net loss of ?183 crore in the year-ago period.

Net interest income (the difference between interest earned and interest expended) was up 21 per cent year-on-year (y-o-y) to ?852 crore (?703 crore in the year-ago quarter). This was mainly due to interest expense declining (by 16 per cent y-o-y) more than interest earned (7 per cent dip).

Additions to NPAs

Other income fell 51 per cent to ?270 crore against ?552 crore in the year-ago period.

Loan-loss provisions soared 153 per cent to ?1,344 crore against ?532 crore in the year-ago quarter.

The bank saw net addition of ?889 crore in non-performing assets (NPAs) during the reporting quarter. As at December-end 2017, gross NPAs stood at ?18,128 crore (?15,418 crore as at December-end 2016).

Gross NPAs rose to 19.05 per cent of gross advances against 15.08 per cent as at December-end 2016.

Deposits declined 5.58 per cent to ?1,33,593 crore as at December-end 2017. Advances declined 9.70 per cent to ?87,666 crore.

Shares of the Pune-headquartered bank closed at ?19.10 apiece, down 1.29 per cent over the previous close on the BSE.

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