Bank of Maharashtra narrows Q4 loss sharply to Rs 113 cr despite higher provisions

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State-run lender Bank of Maharashtra has reduced its March quarter loss sharply to Rs 113.51 crore on sequential as well as year-on-year basis.

Higher operational income (due to lower employee cost) and net interest income helped the bank cut losses.

Loss for the quarter ended March 2017 stood at Rs 455.5 crore and for the December quarter at Rs 596.70 crore.

Net interest income, the difference between interest earned and interest expended, grew by 15.4 percent year-on-year to Rs 881.2 crore in March quarter while other income (non-interest income) increased 4.6 percent to Rs 402 crore.

Operating profit during the quarter jumped 28.3 percent to Rs 546.73 crore due to cut in employee cost.

Asset quality weakened further during the quarter, with gross non-performing assets as a percentage of advances rising to 19.48 percent (from 19.05 percent QoQ) and net non-performing assets increasing to 11.24 percent (from 12.17 percent QoQ) for the quarter ended March 2018.

Provisions and contingencies shot up 38.4 percent sequentially (up 11.3 percent YoY) to Rs 2,040.6 crore in Q4FY18.

At 14:20 hours IST, the stock price was quoting at Rs 14.73, up Rs 1.19, or 8.79 percent on the BSE.moneycontrol