Bank of Maharashtra net plunges 56%; NPAs soar threefold

State-owned Bank of Maharashtra today reported a massive 56% drop in net profit at Rs 117.82 crore in the June quarter due to a steep threefold increase in non-performing assets.

Profit after tax stood at Rs 266.33 crore in the corresponding quarter last year.

In the quarter, the asset quality deteriorated with gross NPAs rising to 4.23% from 1.80%, while net NPAs increased to 2.94% as against 0.80%, the bank said in release.

The NPA provision coverage ratio stood at 49.73%.

The net interest margins stood at was 2.70% in the reporting quarter.

Net interest income, which is the difference between interests paid on deposits the interest earned from lending, was tad one% up to Rs 914.54 crore in the period from Rs 908.02 crore year-ago.

Its capital adequacy ratio under Basel III stood at 10.75%.

Total business of the bank rose 8.88% to Rs 2,05,200 as on June 30, 2014 from Rs 1,88,457.09 crore.

Deposits grew 10.35% to Rs 1,16,365 crore as on June 30, 2014 from Rs 1,05,447 crore.

Advances increased 7.02% to Rs 88,835 crore from Rs 83,010 crore same period last year.