A recent press report said that Bank of Maharashtra has recorded net profit of Rs 122 crore for the quarter ended June 30, 2011, a growth of 3 per cent over Rs 118 crore in corresponding year-ago quarter.
Mr. A.S. Bhattacharya, Chairman and Managing Director, of the bank said that the profit was subdued because of increased staff expenses, provisions and depreciation on investments.
Reports said that Staff expenses of the bank has increased to Rs 229 crore and provisions to cover non-performing assets and also standard advances according to regulatory guidelines was Rs 167 crore. Depreciation on investments increased to Rs 53 crore from Rs 1 crore due to increasing interest rates.
Mr. Bhattacharya said that the bank was able to improve its net interest margins as it focused on low-cost savings and current accounts and shed bulk deposits. He also said that the bank has completed the system-based recognition of non-performing assets according to the regulatory requirements and it now covers 100 per cent of the loans.
The bank has also planned to set up micro asset recovery cells at 10 regional offices, which will focus on recovery of loans such as home loan, personal loan, business loans etc.