A recent press report said that the Bank of Maharashtra has announced a net profit that has been almost doubled than the corresponding period last year. The bank has reported a net profit of 92 per cent to Rs. 100 crore for the second quarter ended September 2011 against Rs. 52 crore during the corresponding period last year. This was mainly due to the vigorous growth in the net income from interest and other income.
The net interest income (the difference between interest earned on advances and investments and interest expenditure) has gone up by 37 per cent to Rs. 633 crore which was Rs. 461 crore during the corresponding period last year and the other income grew by 23 per cent to Rs.145 crore against Rs.118 crore during the same period last year.
Mr.A.S.Bhattacharya, Chairman and Managing Director of Bank of Maharashtra told that the bank’s profitability was improved because of focusing more on retail business, reducing the bulk deposits which are highly costly and the recoveries were also improved.
Among the total deposits retail deposits contributed to about 63 per cent, the bulk deposits constituted 11.5 per cent. The bank was able to recover the provisions to about Rs.368 crore during April to September, 2011. The gross nonperforming assets (NPAs) were Rs. 1110 crore as of September end, 2011.
The bank offers Term Loans, home loan, overdrafts, Letters of Credit, Guarantees and many more such products under its credit basket.