State-run lender Bank of Maharashtra reported a ₹72.4 crore profit for the Jan.-March quarter as compared to a ₹113.5 crore loss during the same period of the previous financial year, as provisioning for bad loans fell sharply.
Provisioning for non-performing assets fell to ₹237 crore during the reporting period from ₹1,995 crore reported a year ago.
This was because of improvement in asset quality, with gross NPA ratio declining to 16.4% from 19.5% a year ago and 17.3% in the previous quarter. Net NPA ratio also fell further to 5.5% from 5.9%, sequentially.
The Reserve Bank of India (RBI) lifted restrictions placed on the bank under the prompt corrective action framework in January after its net NPA ratio fell below 6% in the third quarter.
The bank has a provision coverage ratio of 81.5% as at March end.
A.S. Rajeev, MD & CEO, Bank of Maharashtra said in a statement that the bank was making all efforts to improve financial performance.
The net interest income during the reporting period grew by 13.5% to ₹1,000 crore net interest margin was up by 23 bps to 2.64% for Q4 FY19.
