Bank of Maharashtra Q2 net profit jumps over four-fold

State-owned Bank of Maharashtra on Tuesday said its net profit jumped over four-fold to Rs 114.66 crore in the second quarter ended September 30, due to fall in bad loan proportion leading to decreased provisioning requirement.

The bank had registered a net profit of Rs 27 crore in July-September quarter of the previous fiscal. Total income of the bank during the second quarter of 2019-20 rose to Rs 3,295.91 crore, as against Rs 3,192.80 crore in same period of last year, the bank said in a regulatory filing.

Asset quality of the bank witnessed improvement with the gross non-performing assets (NPAs) coming down to 16.86 per cent of the gross advances as on September 30, 2019 from 18.64 per cent as on September end, 2018.

In absolute value, the gross NPAs of the bank were of Rs 15,408.51 crore, down from Rs 16,872.84 crore. The net NPAs or bad loans were also trimmed to 5.48 per cent (Rs 4,406.56 crore) from 10.61 per cent (Rs 8,742.86 crore).

Provisions for bad loans and contingencies came down to Rs 359.23 crore for the September quarter from Rs 941.71 crore a year ago. The bank said that during the quarter ended September 30, 2019, loans and advances amounting to Rs 2,224.49 crore have been classified as fraud in terms of RBI guidelines and bank holds 100 per cent provision in respect of such advances.

Also, the bank said that since December 31, 2018, the bank has made accelerated provision in respect of sub-standard accounts from 15 per cent to 20 per cent and in respect of doubtful accounts from 40 per cent to 50 per cent as per the approved board policy in line with RBI guidelines.

"In respect of certain loan accounts, there is significant erosion of securities and/or chances of recovery are bleak. Therefore, bank has made 100 per cent provision in respect of 17 accounts for the half year ended September 30, 2019.

"Total provision against these accounts is Rs 1,606.15 crore," it said.

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Bank of Maharashtra reported profit in June quarter

Public Sector lender Bank of Maharashtra monday reported a profit of Rs 89 crore in Q1FY20 on account of a tax write-back. Higher NII, other income and operating income also supported profitability.

The bank had posted a loss of Rs 1,108 crore in the corresponding period last fiscal.

Net interest income grew 16.1 percent year-on-year (YoY) to Rs 996.8 crore in the quarter ended June 2019.

Asset quality weakened further during the quarter with gross non-performing assets as a percentage of gross advances rising 150 bps sequentially to 17.9 percent and net NPA increasing 46 bps quarter-on-quarter (QoQ) to 5.98 percent in Q1.

Provision for bad loans declined sharply by 31 percent YoY to Rs 1,037.44 crore but increased 338 percent sequentially.

Bank of Maharashtra received a tax refund of Rs 343.3 crore in Q1 against Rs 43.5 crore in the same period last year.

Other income or non-interest income grew by 21 percent YoY to Rs 419.24 crore and operating profit increased 40 percent to Rs 658.45 crore in Q1.

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Bank of Maharashtra posts a profit in Q4 on better asset quality

State-run Bank of Maharashtra (BoM) Monday reported a net profit of Rs.72.38 crore in the quarter to March as against a net loss of Rs.113.51 crore in the year-ago period.

The bank, however, reported a net loss of Rs.4,783.88 crore for full year to March 2019, more than four times the loss it had reported in FY18 at Rs.1,145.65 crore.

Total income rose to Rs.3,160.79 crore in the reporting quarter from Rs.3,094.46 crore in the same period last fiscal year, the lender said in a statement.

Gross non-performing assets improved to 16.40% from 19.48%, while net NPA more than halved to 5.52% from a high 11.24%.

The lender restructured 7,556 MSME accounts amounting to Rs.411.69 crore during the year and treated them as standard assets.

In the reporting quarter, the bank classified loans worth Rs.410.62 crore as fraud as per the RBI guidelines and holds 100% provisions for them. For the entire year, it had classified Rs.1,448 crore as fraud.

Of the 17 accounts referred by the RBI to bankruptcy tribunals, the bank sees uncertainty in recovery and has made 100% provisions worth Rs.4,857 crore.

During the year, the bank made Rs.387.53 crore in provisions for all performing and non-performing accounts of the bankrupt IL&FS, the bank said.

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First three PSU Banks which are removed from RBI's PCA list

A Reserve Bank of India (RBI) panel has decided to remove both Bank of India , Bank of Maharashtra and Oriental Bank of Commerce from its prompt corrective action plan (PCA) for state-owned banks that had high levels of bad debt and inadequate capital, a source directly aware of the development told Reuters on Thursday.

The source, who asked not to be named as the discussions are private, said the move follows improvements in the asset quality and capital ratios of both banks.

The RBI’s board for financial supervision took the decision at its meeting on Thursday after reviewing the December quarter performance of all banks on the PCA list, the source said.

In case of Oriental Bank of Commerce, it may also be removed from the list pending the outcome of a technical clarification from the bank, the source added. the net NPA has come down to less than 6 per cent as the government has infused sufficient capital, it said. Hence, it has been decided to remove the restrictions placed on Oriental Bank of Commerce (OBC) under PCA framework, subject to certain conditions and close monitoring, the apex bank added. 

The RBI put 11 state-owned lenders on the PCA list in the past few years. As a result, it barred them from issuing fresh big-ticket loans and expanding their operations, as well as putting their financial performance under close scrutiny.

RBI Press Release:-

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Bank of Maharashtra reports huge loss in Q3

State-owned Bank of Maharashtra Wednesday reported over seven-fold increase in its net loss to Rs.3,764.26 crore during the quarter ended December 2018, on spike in provisions due to higher non-performing assets (NPA) ratio.

The bank had posted a net loss of Rs.596.70 crore in the corresponding quarter of the previous financial year.

The provision for the bad loans increased significantly to Rs.4,538.28 crore in the quarter, compared with Rs.1,343.62 crore in the year-ago period.

The bank's asset quality although improved, with gross NPAs declining to 17.31% of the gross advances as on December 2018 as against 19.05% in the corresponding quarter a year ago.

Net NPAs also declined to 5.91% of the net advances by the end of the third quarter from 12.17% in the year-ago period.

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One bank may come out of PCA this week, Other two in feb

Bank of India has submitted proofs of improvement in parameters.

Close on the heels of recapitalisation, Bank of India, which received the highest infusion of Rs 10,086 crore last month, has submitted details of its three key parametres—net NPA, return on assets (RoA) and capital to risk weighted assets ratio (CRAR)—to the RBI to consider its performance to take the lender out of the PCA list.

Official sources said Bank of India (BoI) has submitted proofs of improvements in its three Prompt Corrective Action triggers to the Reserve Bank and now this would be placed before the RBI’s Board for Financial Supervision (BFS) meeting, expected in a day or two. In all probability, BoI would be out of the PCA framework this week. Sources also added Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC) are also likely to approach the RBI on PCA triggers’ improvements later this week. As things stand, they also have a fair chance of coming out of the PCA framework this fiscal, even as early as February.

Once these three banks come out of PCA, lending by them can be expected to go up by at least 20-25 per cent, said a former bank chairman.

A banking source said BoI shareholders have through the employee stock purchase scheme (ESPS) made a capital infusion of Rs 845 crore, which has been added to the capital base of the bank and that has taken care of all the gaps in its capital shortfalls after counting the recapitalisation by the finance ministry.

Many public sector banks, including Allahabad Bank, Union Bank of India, United Bank of India, Canara Bank and Punjab National Bank, have availed of ESPS to raise funds by issuing shares to their own staff. The government, in March 2017, had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and as a means for raising capital. Syndicate Bank had raised Rs 500 crore through ESPS by allotting 30 crore new shares to its staff. Punjab National Bank mobilised Rs 500 crore through ESPS by issuing 10 crore shares to its employees.

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These banks will be major beneficiaries of Modi govt’s capital infusion

Banks such as the Punjab National Bank, Corporation Bank, Bank of Maharashtra, Allahabad Bank and Bank of India may be major beneficiaries of the government’s enhanced capital infusion plan.

The Modi government has moved to provide additional capital to weak banks after failing to make headway with the Reserve Bank of India over the relaxation of restrictions placed on these banks under the Prompt Corrective Action (PCA) norms.

Finance Minister Arun Jaitley Thursday announced that the government will infuse an additional Rs 41,000 crore of capital into state-run banks, over and above the budgeted amount of Rs 65,000 crore in the fiscal year 2018-19.

With only part of the infusion done so far, more than Rs 83,000 crore of capital will be infused in some state-run banks by the next quarter.

Apart from PNB, the other banks are among the 11 that are under the RBI’s PCA framework. The PNB, hit by the massive Rs 14,000 crore Nirav Modi fraud, has key parameters such as capital adequacy ratio under severe pressure forcing the government to infuse capital to prevent the lender from being pushed into the PCA framework.

Infusion to aid weak banks

The capital is aimed at meeting regulatory capital norms, providing capital to better performing PCA banks to ensure that their key metrics like net NPAs and capital adequacy ratio are well above the regulatory norms so as to facilitate their exit from the framework and to ensure that other banks don’t slip into it, Jaitley said.

Secretary, financial services, Rajiv Kumar said the aim is to help at least four to five banks move out of the PCA framework.

The government contends that the removal of lending restrictions will help in improving the credit flow to important sectors of the economy including the politically important constituency of micro, small and medium enterprises.

The relaxation of the PCA framework has been a major point of difference between the government and the RBI. In its 19 November meeting, the government had argued that the RBI’s PCA framework is far stricter than the global norms.

For instance, RBI takes into account net NPAs as well as negative returns on assets besides capital adequacy to determine if a bank should be placed under the PCA framework, unlike other countries that only look at capital adequacy.

The RBI, however, had defended its stance arguing that restrictions on lending are helping the weak banks strengthen their balance sheet. The matter was eventually referred to the board of financial supervision headed by the governor.

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Bank of Maharashtra appoints new MD, CEO

State-owned Bank of Maharashtra Sunday announced that A S Rajeev has joined the lender as its Managing Director & Chief Executive Officer. 

"A S Rajeev has joined Bank of Maharashtra as Managing Director & Chief Executive Officer on 2nd December 2018. Prior to this, he was Executive Director of Indian Bank from 22 January 2016," the lender said in a release. 

Rajeev is having about three decades of professional experience in three Banks - Syndicate Bank, Vijaya Bank and Indian Bank. 

A qualified Chartered Accountant, he has vast exposure and expertise in all important areas of banking, including corporate credit, international banking, treasury, risk management, credit monitoring & supervision, NPA management, planning & development, human resources, finance, accounts & taxation among others. 

He is a mathematics graduate with professional qualifications of FCA, MBA, DISA and CAIIB, the bank said. 

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Bank of Maharashtra back in black, posts profit in Q2; asset quality improves

Bank of Maharashtra has turned profitable in the quarter ended September 2018  as it has reported net profit of Rs 27 crore.

It had reported net loss of Rs 23.2 crore in the same quarter last fiscal.

Net interest income (NII) was up 4 percent at Rs 1,003 crore versus Rs 963.1 crore. Company's gross NPA was down at 18.64 percent versus 21.18 percent, while net NPA was down at 10.61 percent versus 12.20 percent, QoQ.

In the absolute term the gross NPA reduced to Rs 16,873 crore against Rs 17,800 crore, while net NPA was down at Rs 8,743 crore against Rs 9,195 crore, QoQ.

The company's provisions were at Rs 857.7 crore against Rs 1,633 crore, QoQ and versus Rs 791 crore, YoY.

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PSB announced to closes 51 branches to cut costs

Public sector bank, Bank Of Maharashtra(BoM) has announced the closure of 51 branches across the country as part of cost-cutting measures being implemented in the banking industry, an official said on Wednesday. 

All the branches were in urban centres and have been identified for the action as they were declared nonviable and were incurring huge losses, said the official of the Pune-headquartered bank. 

Declining to be identified, the senior bank official said that these 51 units have been closed down and merged with neighbouring branches. This is the first such measure initiated by any PSB in Maharashtra. The BoM has around 1,900 branches all over India. 

In a terse announcement on Monday, the BoM said that it has closed down and merged these 51 branches for public convenience. The IFSC Code and MICR codes of these branches have also been cancelled and all the savings, current and other bank accounts have been transferred to the branches with which they have been merged. 

All customers have been directed to deposit their cheque-books issued from the closed branches with the old IFSC/MICR Codes by November 30, and collect their payment instruments bearing the new branch's IFCS/MICR codes. 

The BoM cautioned that since the old IFSC/MICR Codes have been spiked and shall be discontinued permanently from December 31, the customers, henceforth, should conduct all their banking transactions only with the new IFSC/MICR Codes. 

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Bank of Maharashtra Q1 loss nearly trebles as NPA rise

Bank of Maharashtra on Friday reported a loss for the 10th consecutive quarter as bad loans continued to mount and provisions soared. The bank said its June quarter loss widened to Rs 1,119 crore from Rs 412.20 crore a year ago.

The bank reported a tax write back of Rs 43.56 crore in the quarter, compared to Rs 205.92 crore in the same period last year. The bank would have reported higher loss if there was no tax write back.

Provisions and contingencies rose 41.8% to Rs 1,632.88 crore in the quarter from Rs 1,151.60 crore a year ago. On a quarter-on-quarter basis, they fell 20% from Rs 2,040.58 crore.

Gross non-performing assets (NPAs) fell marginally 1.38% to Rs 17,800.30 crore at the end of the June quarter from Rs 18,049.23 crore in the same quarter last year.

As a percentage of total loans, gross NPAs stood at 21.18% as compared to 19.48% in the previous quarter and 18.59% in the year-ago quarter. Net NPAs were at 12.2% in the June quarter compared to 11.24% in the previous quarter and 12.48% in the same quarter last year.

Net interest income (NII), or the core income a bank earns by giving loans, was up 24% to Rs 858.49 crore versus Rs 692.80 crore last year. Other income declined 25.5% to Rs 464.95 crore.

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Bank of Maharashtra Q4 standalone net loss narrows

Bank of Maharashtra reduced its March quarter loss sharply to Rs 113.51 crore on sequential as well as year-on-year basis.

Higher operational income (due to lower employee cost) and net interest income helped the bank cut losses.Loss for the quarter ended March 2017 stood at Rs 455.5 crore and for the December quarter at Rs 596.70 crore.

Net interest income, the difference between interest earned and interest expended, grew by 15.4 percent year-on-year to Rs 881.2 crore in March quarter while other income (non-interest income) increased 4.6 percent to Rs 402 crore.

Operating profit during the quarter jumped 28.3 percent to Rs 546.73 crore due to cut in employee cost.

Asset quality weakened further during the quarter, with gross non-performing assets as a percentage of 

advances rising to 19.48 percent (from 19.05 percent QoQ) and net non-performing assets increasing to 11.24 percent (from 12.17 percent QoQ) for the quarter ended March 2018.

Provisions and contingencies shot up 38.4 percent sequentially (up 11.3 percent YoY) to Rs 2,040.6 crore in Q4FY18.

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Bank of Maharashtra knocks CBI's door in loan default case

Adding to the bandwagon of loan defaulters, the Bank of Maharashtra has filed an FIR with the Central Board of Investigation (CBI) against Delhi-based businessman Amit Singla and others over an alleged loan default.

The accused are M/s Ashirwad Chain Co-Proprietor Amit Singla, his father Roshan Lal and mother Sumitra Devi, M/s Tech Mach international(p) Ltd, and other person(s), company(s) or firm(s) who may have conspired with the accused persons, the bank said.

M/s Ashirwad Chain Company, the bank said, was sanctioned CC of Rs 3.5 million (Rs 350 lakhs) on October 27, 2010 that was enhanced to Rs 5.5 million (Rs 550 lakhs) on September 09, 2011, and further to Rs 9.5 million (Rs 950 lakhs) on August 22, 2012.

As per the FIR, the bank alleged that the accused persons in a criminal conspiracy, deceived it and dishonestly induced the bank for getting the loan on the false representation by forging documents and criminally misappropriated and used the said loan amount.

The bank also alleged that during the time of enhancing the credit facilities, overvalued valuations were deliberately given in connivance with the borrowers and guarantors by the valuer, M/s.

Tech Mach International, in order to cause the undue advantage to the borrower and guarantors, and fraudulently induce the bank to finance the borrower on the basis of the valuations given.

Singla had put three properties as collateral which were valued at over Rs 180 million (Rs 18 crore) by Tech Mach International at the time of taking the loan, but the actual market value of the properties were found to be only Rs 25 million (Rs 2.5 crore) after the loan turned into an NPA.

To this, the bank said the accused persons had submitted the inflated stock audit report and inflated balance sheet to avail the loan, adding that they diverted funds of the bank against the terms and conditions of the sanction, thus causing "wrongful loss to the bank and wrongful gain to themselves."

An investigation into the matter was conducted by S K Saha, the assistant general manager of the bank, whereby a wide gap was found in the valuation of the properties collaterally secured with the bank at the time of sanction and enhancement with its present market value.

Furthermore, it was found that the number of transactions had taken place through RTGS among associate/sister concerns, controlled by its proprietor or his family members just to inflate sales figures and siphoning bank funds.

The complainant had in a letter dated December 24, 2014, informed all the accused that the CC Account of the classification of the CC account as a non-performing asset (NPA) in accordance with the guidelines of the Reserve Bank of India (RBI).

However, Singla, the bank alleged, failed to maintain financial discipline and defaulted in properly maintaining the said CC account in addition to various other breaches and violations of the sanction of the said CC facility. Consequently, a huge outstanding became due and payable to the bank, it said.

The bank also assured that original papers relating to property mortgaged and other correspondences exchanged by the it with the borrower, the above named accused and other banks were in its possession, and would be handed over to the investigating officer as and when required/directed.

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Bank of Maharashtra Recruitment for Specialist Officers Posts 2018

Bank of Maharashtra has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

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Bank of Maharashtra Q3 net loss widens 3-fold

State-owned Bank of Maharashtra on Tuesday reported over three-fold jump in net loss to Rs596.70 crore during the quarter ended December 2017 on spike in provisions due to higher non-performing assets (NPA) ratio.

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Bank of Maharashtra Q2 result, loss narrows

Bank of Maharashtra today reported narrowing of its loss to Rs 23.24 crore for the second quarter ended September 30 even as bad loans increased.

The state-owned lender had posted a loss of Rs 337.15 crore in the same period last fiscal.

However, total income of the bank rose to Rs 3,303.62 crore during the quarter, as against Rs 3,297.31 crore in the year-ago period, Bank of Maharashtra said in a filing to stock exchanges.

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Bank of Maharashtra Recruitment for Specialist Officers (Scale IV & II) Posts 2017

Bank of Maharashtra has published Advertisement for Specialist Officers in Scale IV & II. 2017. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

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Bank of Maharashtra(BoM) Q1 net loss widens

State-owned Bank of Maharashtra today reported a widening of its net loss to Rs 412.20 crore for the first quarter ended June of the current fiscal as gross bad loans zoomed.The bank's net loss in the corresponding April-June period of the previous fiscal was at Rs 397.40 crore.

There was a sharp deterioration in the bank's asset quality as gross non-performing assets, or bad loans, hit 18.59 percent of the gross advances as on June 30, 2017 from 12.64 percent in the same period ended June 30, 2016, the bank said in a regulatory filing.Sequentially, gross NPAs rose from 16.93 percent as on March 31, 2017.

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RBI initiates PCA against Bank of Maharashtra(BoM) as bad loans rise

The Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PCA) against Pune-based Bank of Maharashtra (BoM) in view of the high level of bad loans and negative return on assets. BoM has become the sixth state-owned lender to be put under the PCA.This is to inform that the RBI letter dated June 15, 2017, has initiated PCA for the bank in view of high net non-performing assets (NPA), BoM said in a regulatory filing on stock exchanges on Saturday.

"This action will not have any material impact on [the] performance of the bank and will contribute to improve the internal controls of the bank and improvement of its asset quality, profitability and efficiency," it said.

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Five banks have reported gross NPA ratios of over 15%

Bad loan crisis of state-owned banks surged 56.4 per cent in the 12-month period ending December 2016. It is set to rise further in the next two quarters with the small and medium sectors struggling to repay the loans after the NDA government’s demonetization move in November 8. It was reported by The Indian Express that the gross non-performing assets (NPA) surged to Rs 614,872cr.

Despite the Reserve Bank of India (RBI) announcing numerous restructuring schemes, the bad loans have risen up from Rs 261,843cr by 135 per cent in last two years. They now constitute 11 per cent of of the gross advances of Public Sector Unit (PSU) banks. In all, the total NPAs including both the public and private sector banks were Rs 697,409cr in December 2016. These figures were compiled by Care Ratings.

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