State-run lender Bank of Maharashtra reported sevenfold rise in net loss to ₹3,764.26 crore for the quarter ended December 31 as compared with the same period of the previous year due to higher provision for bad loans. The bank posted a net loss of ₹596.70 crore in the Oct.-Dec. period of the previous financial year.
Provision for bad loans shot up to ₹4,538.28 crore during the reporting period, as compared to ₹1,343.62 crore in the year-ago period.
The lender, under prompt corrective action, saw asset quality improving with gross NPA ratio coming down to 17.3% of gross advances from 19.05% a year ago and net NPA ratio declined to 5.91% from 12.17%.
Net interest income for the quarter went up by a marginal 2.3% to ₹872 crore. Non-interest income increased by 52% to ₹411 crore as compared to ₹270 crore a year ago.
“The bank has shown consistent efforts in arresting fresh slippages. Slippages for the quarter ended December 31, 2018, are ₹1,098 crore as compared to ₹1,536 crore for the quarter ended December 31, 2017, and ₹1,365 crore for the quarter ended September 30, 2018,” the bank said in a statement.
Provision coverage ratio of the lender also improved to 81.07% as on December 31, 2018, while excluding technical write off it was 70.17%.
