Bank of Maharashtra reveals Q3 earnings, shares surged 7.12%

Bank of Maharashtra’s Board of Directors gave a go to the bank’s results for the quarter on Monday.

The operating profit of the bank grew by a massive 95% to ₹842 crore over the last one-year period. The net profit also rose to ₹135 crore as against losses of ₹3,764 crore in the previous year Q3 results anchored by growth in net interest income, strong recovery, and holding back on expenses.

The pre-tax profit stood at Rs 404 crore in Q3 FY21 results showing a massive change since last year when it reported pre-profit losses of Rs 75 crore in Q3 FY20.

Against last year’s cost-to-income ratio of 48.31% in the same quarter, it was reported to be at 51.92%

Asset quality showed a major change as Gross NPA was reported to be at Rs 15,746 crore (16.77 %) at the end of Q3 FY19, as against Rs 8,072 crore (7.69 %) as on December 31, 2020. Net NPA stood at Rs 4,507 crore (5.46 per cent) as against Rs 4,647 crore (5.91 per cent).

The bank has maintained a productive Provision Coverage Ratio of 90% as on December 31, 2020, compared to a PCR of 83% during Q2 results.

The Bank of Maharashtra has not declared accounts as NPA which were not declared NPA by August 31, 2020, in ordinance with the Supreme Court Order.

Deposits in net were up by 14.08% at Rs 1,61,971 crore in Q3 FY2020 with gross advances increased by 11.74% at Rs 1,04,904 crore. CASA (Current Accounts Savings Account) deposits, a type of non-term deposits, were up by 20.82% at Rs 82,452 crore.

Due to successful results in this quarter, the share price of Bank of Maharashtra grew by 7.12% on Tuesday.

As on 31 December 2020, the Government of India held a stake of 93.33% in Bank of Maharashtra.

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