According to a recent press report, net profit of Bank of Maharashtra when compared with the corresponding period last year has gone up from Rs. 52 crore to Rs 100 crore in the July – September 2011 quarter.
Mr. A.S. Bhattacharya Chairman and Managing Director of the bank said that the Net Interest Income has increased to 37 percent amounting to Rs 633 crore from Rs. 461 crore, and the other incomes have increased to 23 percent which amounted to Rs. 145 crore.
Mr. A.S. Bhattacharya said that the bank was able to achieve the profit due to its focus on the retail business, reduction in bulk deposits and increase in recoveries. The retail deposits of the bank in the July- September quarter increased from 54 percent to 63 percent of the total deposits, the deposits were Rs. 8000 crore which is 11.5 percent of the total deposit in the same quarter, the recoveries in the April-September quarter was about Rs 368 crore and the NPAs are about Rs. 1110 crore. He said that the bank offers loans to different segments such as Agriculture, mid-corporate and micro, Small and Medium Enterprises.
Mr. M.G.Sanghvi, Executive Director of the bank said that the Net Interest Margin for the September quarter increased from 2.71 percent to 3.24 percent. He said that the bank was expecting Rs. 900 crore from government in order to increase its capital adequacy ratio, so that it can lend more.