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Sharp rise in bad loans and higher provisions impacted Bank of Maharashtra's net profit numbers for the first quarter of FY16.
The Bank reported net profit of Rs 59.44 crore for the year ended June 30, 2015 as compare to Rs 117.82 crore, down by 49.5% over the previous year. It's total income for the quarter grew 7.3% to Rs 3,526.13 crore against Rs 3,286.12 crore in the same period a year ago.
Bank's net non performing assets (NPA) during the first quarter increased sharply to 5.04% as against 2.94% during the corresponding period a year ago. According to S. Muhnot, Chairman & Managing Director, Bank of Maharashtra, due to the adverse economic conditions, there is a sharp increase in NPA.
