BoM Q1 net loss widens to Rs 412cr as NPAs soar

State-owned Bank of Maharashtra today reported a widening of its net loss to Rs 412.20 crore for the first quarter ended June of the current fiscal as gross bad loans zoomed.
The bank's net loss in the corresponding April-June period of the previous fiscal was at Rs 397.40 crore.
There was a sharp deterioration in the bank's asset quality as gross non-performing assets, or bad loans, hit 18.59 per cent of the gross advances as on June 30, 2017 from 12.64 per cent in the same period ended June 30, 2016, the bank said in a regulatory filing.
Sequentially, gross NPAs rose from 16.93 per cent as on March 31, 2017.

Net NPAs also jumped to 12.48 per cent of the net loans disbursed by June-end from that of 8.73 per cent in the corresponding period a year earlier. As on end-March 2017, net NPA proportion was 11.76 per cent.
In absolute terms, gross NPAs stood at Rs 18,049.23 crore by end-June 2017, up from 13,039.63 crore as on June 30, 2016. Net NPAs were Rs 11,259.04 crore against Rs 8,609.44 crore during the two comparable periods.

This resulted in a 33.2 per cent rise in NPA provisions from year ago to Rs 1,157.54 crore for April-June period of 2017-18 against Rs 869.09 crore in the year-ago period.

Total income of the bank fell to Rs 3,209.84 crore in the three months to June of 2017-18, as against earnings of Rs 3,444.15 crore in the same quarter a year ago.
Bank of Maharashtra said it sold advances of Rs 50.86 crore to asset reconstruction company at a loss of Rs 5.53 crore during the June quarter of 2017-18.
"During the quarter ended June 30, 2017, loans and advances amounting to Rs 47.71 crore have been classified as fraud in terms of RBI circulars...And the entire amount is provided for during the quarter," it said.
The Pune based lender said it has made incremental provision of Rs 3.87 crore during the June quarter as per Reserve Bank's asset quality review (AQR).

As on June 30, 2017 the bank's non-performing loans provision coverage ratio (PCR) was 47.32 per cent (44.48 per cent on March 31, 2017).
Stock of the bank closed 1.75 per cent up at Rs 29.10 on BSE today.