Gross and Net NPAs as on December 31, 2013 stood at 4.01 and 2.56 percent, respectively, compared to 1.71 and 0.66 per cent, as on December 31, 2012. The bank has recorded portfolio depreciation of Rs 112 crore.
Commenting on results, Sushil Muhnot, chairman and managing director,Bank of Maharashtra, said, "The current slowdown in the economy has badly affected our business. Increased cost of deposits in another reason for decline in the profits. We need to focus on SMEs and MSMEs for which we are offering new products for the recovery. Our aim is to increase profitability. We have spent Rs 300 crore on staff costs and provision of Rs 320 crore for NPAs. We are looking inclusive growth from the SME sector. In the last nine months, Bank's NPA cost has increased form Rs 1137 crore to Rs 3500 crore. But now, we are trying to improve our performance and restructuring the few processes. "
According to Muhnot, larger portion of the NPAs belongs to (55 per cent) infrastructure sector. The bank has received Rs 800 crore equity for the government.