Mahabank Net Dips 49.86%

Bank of Maharashtra has reported a sharp drop of 49.86 per cent in net profit at Rs 45.19 crore in fiscal 2000-2001, compared with Rs 90.13 crore the previous year.

Total income was up by 16.73 per cent to Rs 1,928.27 crore (Rs 1,651.83 crore). The bottomline of the bank has been hit due to the high cost of voluntary retirement scheme (VRS).

The non-performing assets (NPAs) increased to 7.41 per cent to Rs 876 crore in fiscal 2000-2001 from 6.97 per cent constituting Rs 716 crore in the previous fiscal.

The high exposure of the bank to the steel and the engineering sector resulted in higher NPAs. Besides, continuing drought in several parts of the state contributed at least Rs 100 crore NPAs in last fiscal.

The bank offered VRS to 1,876 employees last fiscal at a cost of Rs 230 crore and reduced employee strength to 14,000.

The bank has made Rs 80 crore provision for the cost of reducing its headcount in last fiscal, while the balance Rs 150 crore will be provided for in the next four years.