Bank of Maharashtra Q3 net loss widens three-fold to Rs 59.67 billion

Bank of Maharashtra saw a net loss of Rs 59.67 billion for the quarter ended December 2017, three times higher against a net loss of Rs 18.25 billion in the year-ago quarter.

“Despite an increase in operating profit, net loss expanded due to higher provision required on cases referred to NCLT as per RBI directive and mark to market (MTM) losses on investments due to a sudden increase in bond yield,” said the bank. In line with RBI directives, the Bank has made an additional provision of Rs.656 crore during the period ended December 31, 2017, for cases referred to NCLT. It has also made provision of Rs.107 crore for MTM loss on investments during the quarter under review.

The asset quality worsened as gross non-performing asset(GNPA) ratio stood at 19.05 per cent in December 2017. The GNPA ratios for September 2017 and December 2016 were 18.54 per cent and 15.08 per cent respectively.

Bank's Capital Adequacy Ratio (CAR) stood at 11.29 per cent at end of December 2017, against 11.43 per cent in December 2016.