Bank of Maharashtra earned net profit of INR 101 crore for the 1st quarter of FY 2020-21

The Board of Directors of Bank of Maharashtra approved the financial results for the quarter ended 30th June, 2020 at its meeting held in Pune on Thursday, 23rd July, 2020.

Operating performance:

- Net Profit for Q1 of FY20-21 grew by 24.72% on Y-o-Y basis and 75.47 % on sequential basis to INR 101 crore.

- Operating profit for Q1 of FY20-21 grew by 7.91% on Y-o-Y basis and 19.33% on sequential basis to INR 710 crore.

- Yield on advance for Q1 of FY 20-21 increased by 67 basis points on Y-o-Y basis and 83 basis points on sequential basis to 7.69%

- NII for Q1 of FY20-21 grew by 9.14% on Y-o-Y basis and 6.40% on sequential basis to INR 1087.92 crore

Business Growth:

- Total Business increased to INR 2,49,608 crore as on 30.06.2020 as against INR 2,31,973 crore as on 30.06.2019 showing Y-o-Y growth of 7.60%.

- Bank is maintaining a healthy CASA Ratio of 50%. CASA increased by 13.51% on Y-o-Y basis to Rs.75824 crore.
- Savings deposits grew by 14.45% on Y-o-Y basis to INR 63814 crore.
- Total deposits grew by 10.11% Y-o-Y basis to INR 152987 crore.
- Gross Advances grew by 3.86 % to INR 96,621 crore on Y-o-Y basis as on 30.06.2020
- Retail advances for Q1 of FY20-21 grew by 31.36% on Y-o-Y basis and 6.05% on sequential basis.
- MSME advances for Q1 of FY20-21 grew by 35.92% on Y-o-Y basis and 7.28% on sequential basis.

Capital Position:

- Capital adequacy at 13.21% with Common Equity Tier 1 ratio of 10.23% as on 30.06.2020
- Liquidity Coverage Ratio at 232.33%.

Asset quality:

- Net NPA declined to 4.10% as on 30.06.2020 against 5.98% as on 30.06.2019. The same was 4.77% as on 31.03.2020.

- Gross NPA reduced to 10.93% as on 30.06.2020 against 17.90% as on 30.06.2019. The same was 12.81% as on 31.03.2020

- Provision Coverage ratio improved to 85.62% as on 30.06.2020 as against 81.24% as on 30.06.2019. The same was 83.97% as on 31.03.2020

- In terms of RBI circular dated 17th April, 2020 on Covid-19, Bank has made provision of INR 275 crore in Q1 of FY20-21 towards Covid-19 Regulatory Package Provision and cumulative provision of INR 425 crore as on 30.06.2020 as against regulatory requirement of INR 75 crore @ 10%.

Profit & Loss Account: Period ended 30th June, 2020

- Net profit increased to Rs 101 crore for the quarter ended 30.06.2020 as against Net profit of Rs 81 crore for the quarter ended 30.06.2019. The net profit for the quarter ended 31.03.2020 was Rs 58 crore.

- Operating profit for the quarter ended 30.06.2020 increased to Rs 710 (increase of Rs.52 crore showing growth of 7.84 %) as against Rs 658 crore for the quarter ended 30.06.2019. Operating profit for the quarter ended 31.03.2020 was Rs 595 crore.

- Net Interest Income increased to Rs 1,088 crore (Increase of Rs. 91 crore showing growth of 9.14 %) for the quarter ended 30.06.2020 as against Rs 997 crore for the quarter ended 30.06.2019. The same was Rs 1,023 crore for the quarter ended 31.03.2020 and Rs.4279 crore for the year ended 31.03.2020.

- Yield on advances for the quarter ended 30.06.2020 increased to 7.69 % as against 7.02% for the quarter ended 30.06.2019. The same was 6.86% for the quarter ended 31.03.2020

- Cost to Income Ratio improved to 51.25 % for the quarter ended 30.06.2020 as compared to 53.50% for the quarter ended 30.06.2019.The same was 57.93% for the quarter ended 31.03.2020

Balance Sheet: As on 30th June, 2020

- Total business increased to Rs.2,49,608 crore as on 30.06.2020 as against Rs.2,31,973 crore as on 30.06.2019. Total business stood at Rs 2,44,955 crore on 31.03.2020.

- Total deposits increased to Rs 152987 crore as on 30.06.2020 as against Rs.138941 crore as on 30.06.2019. Total deposit stood at Rs 1,50,066 crore as on 31.03.2020.

- CASA deposits increased from Rs 66,801 crore as on 30.06.2019 to Rs 75824 crore as on 30.06.2020, registering a growth of Rs 9,023 crore( 13.51%) on Y-o-Y basis. The same was Rs 75475 crore as on 31.03.2020. Share of CASA to total deposits stood at 50% as on 30.06.2020.

Capital Adequacy

- Capital Adequacy Ratio under Basel III framework stood at 13.21% as on 30.06.2020 as compared to 11.69% as on 30.06.2019.

- CET 1 ratio of 10.23% is well above regulatory minimum.

Asset Quality

- Gross and Net NPA levels as on 30.06.2020 stood at Rs. 10,559 crore (10.93%) and Rs 3,677 crore ( 4.10%) respectively, as against Rs 16,650 crore (17.90%) and Rs 4,856 crore (5.98%) as on 30.06.2019. Gross and Net NPA were Rs 12152 crore (12.81%) and Rs 4,145 crore (4.77%) respectively as on 31.03.2020.

- Provision Coverage Ratio increased to 85.62% as on 30.06.2020 as against 81.24% as on 30.06.2019. The same was 83.97% as on 31.03.2020. The increase in Provision Coverage Ratio is mainly on account of Covid-19 Provision of Rs 425 crore as on 30.06.2020.

Shares of BANK OF MAHARASHTRA was last trading in BSE at Rs.11.87 as compared to the previous close of Rs. 11.62. The total number of shares traded during the day was 692999 in over 3626 trades.

The stock hit an intraday high of Rs. 11.95 and intraday low of 11.63. The net turnover during the day was Rs. 8214315.

Source : Equity Bulls

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