State-run lender Bank of Maharashtra (BoM) has repor-ted 50.2 per cent growth in net profit at Rs 135.54 crore for the quarter ended December 31, compared with Rs 90.25 crore in the same period of the previous year. A decline in costs and healthy growth in advan-ces, despite an increase in provisioning, aided the growth.
Yields on advances rose 200 basis points to 11.76 per cent, while the cost of deposits rose 100 basis points. Costs of deposits were reined in, as the bank aggressively reduced dependence on bulk deposits. It maintained a high share of low cost deposits, with 41.01 per cent of its total being current account and savings account ones.
The net interest margin rose 54 basis points to 3.23 per cent on a year-on-year basis.
Net interest income rose 34 per cent to Rs 476 crore, owing to 16 per cent year-on-year growth in advances. However, on a sequential basis, the loan book remained almost flat, as the bank was cautious in lending.
“We have been cautious in loan disbursements in the previous quarter, due to the uncertain economic environment. We have a pipeline of Rs 10,000 crore of loans, which are sanctioned and could be disbursed in the current quarter,” said chairman and managing director A S Bhattacharya.
The bank incurred mark-to-market losses of Rs 211 crore from its treasury operations, compared to Rs 110 crore in the same period of the previous financial year.
While both net and gross non-performing assets declined sharply, the provision coverage ratio improved to 85.96 per cent as on December 31, compared to 60.02 per cent a year ago.
