Bank of Maharashtra (BoM) today said its net profit for the second quarter ended September 30, 2011, has jumped 92% to Rs 100.42 crore compared to Rs 52.3 crore in the corresponding quarter last year.
The total income of the bank has risen by 36.44% from Rs 1,425.61 crore to Rs 1,945.15 crore for the second quarter.
Its Net Interest Income (NII) reported a 37.65% growth to Rs 1,800.39 crore from Rs 1,307.96 crore, while the non-interest and other income has risen by 23% to Rs 144.62 crore, a bank statement said here.
The gross non-performing assets (NPAs) ratio of the bank dipped by 143 basis points (bps) from 3.58% to 2.15%, while the net NPA ratio decreased by 161 bps from 2.18% to 0.57% on YoY basis, it said.
"During the year, it was a challenge for the banking sector to maintain the asset quality. BoM has done well in recovering the NPAs and in containing the slippages in asset quality to a large extent.
"The bank hopes to bring down gross NPA level below 2.25% and net NPA below 1.25%," BoM Chairman and Managing Director AS Bhattacharya said.
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In this environment of rising inflation, tightening monetary policy and the consequent hardening interest rates, the bank has been focusing on enhancing the business quality and operating efficiency to bring about improvement in costs and margins, he said.
The bank continues to give focused attention to cater to the credit needs of MSME sector. The bank has set a target of achieving a total business of Rs 1,40,000 crore with mix of deposits Rs 80,000 crore and advances Rs 60,000 crore in FY12, Bhattacharya said.
The bank has 1,564 branches and expects to add 36 more branches, of which 19 will be in under-banked districts, and 4 in the North-Eastern states.
BoM is also looking at opening branches in the overseas markets, Bhattacharya added.