Bank of Maharashtra Posted Net Profit of Rs.72.38 crore for Q4, of FY 2018-2019
Shri. A. S. Rajeev, Managing Director & CEO, Bank of Maharashtra announced the financial results for Quarter/ year ended March 2019 along with Shri. A. C. Rout & Shri. Hemant Tamta, Executive Directors of the Bank.
Speaking on the occasion, Shri. A. S. Rajeev stated that Bank is making all efforts to improve financial performance. Bank has made various structural, systemic and strategic changes to improve performance of the Bank and the changes has started yielding result by way of improved financials.
Bank will continue to focus on improving operational efficiency strengthening Retail, Agriculture and MSME (RAM) and recovery measures to provide value to Bank’s customers, shareholder and other stakeholders.
Key Performance Highlights ( Quarterly)
1. Profitability:
Bank earned Net profit for Q4 FY 19 for Rs 72.38 crore as against loss of Rs (113.49) crore for Q4 FY 18.
Operating profit for Q4 FY 19 is Rs.501 crores as against operating profit of Rs.547 Crores for Q4 FY 18. The decrease in operating profit is mainly due to increase in depreciation on revalued asset by Rs.82 crore as per the revised AS 10 guideline.
« Net interest income for Q4 FY 19 was Rs 1000 crore as against Rs 881 crore for Q4 FY 18 registering growth of 13.47%.
« Net Interest margin (NIM) up by 23 BPS increased from 2.41% for Q4 FY 18 to 2.64% for Q4 FY 19.
« Interest expenditure has reduced substantially from Rs 1811.20 crore for Q4 FY 18 to Rs 1775.27 crore (-1.98%) for Q4 FY 19. Reduction in interest expenditure was mainly on account of reduction in cost of deposits on account of higher CASA deposits as well as repayment of high cost borrowings i.e. refinance, Tier1/ Tier 2 bonds.
« Cost of Deposits has come down by 32 bps from 5.31% for FY 18 to 4.99% for FY 19.
« Cost to income ratio stood at 63.83% for Q4 FY 19 as against 57.39% for Q4 FY 18. This is mainly due to increase in depreciation on revalued assets by Rs.82 crore and increase in staff cost mainly on account of AS 15.
