State-owned Bank of Maharashtra on Thursday reported a 103 % jump in its standalone net profit to ₹ 264 crore in the September 2021 quarter, helped by healthy growth in net interest income.
The lender had reported a standalone profit after tax of ₹ 130 crore in the same quarter of the previous fiscal.
The bank's performance in the July-September 2021 period was good despite the pandemic, the bank's Managing Director and CEO A.S. Rajeev said.
"One major reason for higher profit is growth of 34 % in NII (net interest income). Our core performance has improved," he told reporters.
The bank's recovery from written-off accounts stood at ₹ 340 crore, including ₹ 258 from the DHFL resolution, in the quarter, and this also resulted in higher profit.
During the April-September period of this fiscal, the bank reported a 104.11 % jump in the net profit at ₹ 472 crore as against ₹ 231 crore for HYFY21.
In Q2 FY2022, NII grew 33.84 % on a year-on-year basis to ₹ 1,500 crore as against ₹ 1,120 crore in the year-ago quarter.
Non-interest income rose 22.61 % to ₹ 493 crore.
Net interest margin (NIM) improved to 3.27 % as on September 30, 2021.
Gross non-performing accounts (NPA) declined to 5.56 % from 8.81 % in the corresponding quarter of the previous fiscal. Net NPA also reduced to 1.73 % as against 3.30 %.
Provision coverage ratio improved to 92.38 % as against 87.15 %. It holds a cumulative COVID-19 provision of ₹ 973 crore as of September-end.
Banks' recovery and up-gradation stood at ₹ 645 crore from ₹ 556 crore in the year-ago period.
Fresh slippages in the quarter were ₹ 553 crore.
The lender said Srei Infrastructure, where it has an exposure of ₹ 550 crore, was identified as an NPA in the quarter and the account is fully provided for.
Total basel-III capital adequacy ratio improved to 14.67 % with common equity tier-1 ratio of 11.38 % for Q2 FY22.
Gross advances increased 11.44 % to ₹ 115,235 crore and total deposits were up by 14.47 % to ₹ 181,572 crore.
Mr. Rajeev said the bank expects 14-15 % credit growth during the current fiscal.
The bank's scrip was trading at ₹ 21.90 apiece, up 4.53 % on the BSE.
