Bank of Maharashtra posts net profit of Rs 270 mn after 10 quarters

Bank of Maharashtra (BoM), the Pune-based public sector lender, has turned the corner by posting a net profit of Rs 270 million in the second quarter ending September 2018 (Q2FY19), owing to higher recoveries and control on costs, including interest costs. 

It moved into the black after posting a net loss for 10 consecutive quarters (since March 2016). It had posted a net loss of Rs 11.19 billion in April-June 2018 (Q1FY19). Its net loss for Q2FY18 was Rs 0.23 billion. Its stock closed 19.4 per cent higher at Rs 13.95 per share on the BSE. The bank is under the Reserve Bank of India’s Prompt Corrective Action regime, which restricts corporate lending and seeks time-bound improvement in financial profile. 

A C Rout, executive director, Bank of Maharashtra, said the reduction in cost of deposits and higher recoveries (from written-off accounts) helped in the net profit in Q2FY19. The recoveries from NCLT cases would provide substantial benefit to the bottom line in the third and fourth quarters.

Its net interest income for Q2FY19 rose by four per cent to Rs 10.03 billion as against Rs 9.63 billion for Q2FY18. 

BoB net profit rises 

Public sector lender Bank of Baroda’s (BoB’s) net profit for Q2FY19 rose by 19.7 per cent to Rs 4.25 billion on higher net interest income and lower provisions for bad loans. It had posted a net profit of Rs 3.55 billion in Q2FY18. 

Dena Bank Q2 net loss at Rs 4.16 billion 

Dena Bank posted a net loss of Rs 4.16 billion in Q2FY19. It had posted a net loss of Rs 1.85 billion in the year-ago period. Its Net interest Income (NII) rose by 20 per cent to Rs 7.25 billion in Q2FY19 from Rs 6.01 billion in Q2FY18.