Bank of Maharashtra reports net loss of Rs 4,784 crore in FY 19

The government-owned Bank of Maharashtra on Monday reported a mounting net loss of Rs 4,784 crore in 2018-19 from Rs 1,146 crore in the previous fiscal year, mainly due to slippages from agriculture loans.

During January to March this year, the net loss was Rs 72 crore compared to Rs 113 crore in the same period of last year. In the third quarter ended December 31, it was a whopping 3,764 crore.

In the financial year ending March 31, loans and advances totalling Rs 1,448 crore have been classified as fraud in terms of Reserve Bank of India (RBI) guidelines, according to an official statement.

The bank's accumulated losses stand at Rs 7,327.53 crore.

Meanwhile, reports said the Bank of Maharashtra has decided not to extend loans in eight zones of Maharashtra and Madhya Pradesh that include Aurangabad, Latur, Akola, and Amravati, which are hit by drought.

The other zones are Solapur and Jalgaon in Maharashtra, and Bhopal and Jabalpur in Madhya Pradesh. Bank branches in these zones with high percentage of agri non-performing assets have been identified for curative action.