MahaBank profit up 48% to Rs 90 cr

Pune-based Bank of Maharashtra has posted 47.57 per cent rise in net profit for the second quarter of FY08 on the back of robust growth in interest income and other income.

Net profit during the September quarter stood at Rs 90.45 crore, up from Rs 61.29 crore a year earlier.

Net interest income rose 17 per cent to Rs 292.86 crore from Rs 250.43 crore on a y-o-y basis, while non-interest income increased 50.62 per cent to Rs 61.83 crore in the same period from Rs 41.05 crore a year ago. 
 

Rs crore	2006	2007
Interest earned	613.83	851.03
Other income	69.13	61.83
Expenditure	562.5	750.74
Profit before tax	120.46	162.12
Net profit	61.29	90.45
CAR (%)	11.16	13.6
NPR (%)	9.98	10.63
Source: BSE

Total income grew 33.66 per cent to Rs 912.86 crore in the quarter, up from Rs 682.96 crore a year earlier. The bank's deposits grew 25 per cent to Rs 36,864 crore, while advances were up 30.52 per cent from the corresponding period a year ago.

The cost of deposits rose to 5.75 per cent in the September quarter from 5 per cent a year earlier. Despite the yield on advances improving to 10.10 per cent from 8.63 per cent a year earlier, the banks net interest margin fell to 2.9 per cent from 3.03 per cent over the period.

The retail advances grew 25.69 per cent to Rs 4,007 crore, constituting 16 per cent of the total advances. The share of low cost deposits stood at 41.52 per cent by September-end.

The ratio of gross NPAs and net NPAs stood at 3.18 per cent and 1.12 per cent at the end of the quarter, down from 4.74 per cent and 1.66 per cent a year earlier.

The bank has received approval from the Insurance Regulatory and Development Authority (IRDA) for its proposed general insurance venture with Chennai-based Shriram Group and South African insurer Sanlam, said Rajiv Madhok, executive director, Bank of Maharashtra.

The bank will hold a 15 per cent stake in the proposed venture, with the foreign partner holding 26 per cent and the remaining stake being held by Shriram Group.

The bank has decided to lower floating interest rates offered on housing loans by 25-50 basis points to 10-10.75 per cent.