Public sector Bank of Maharashtra (BoM) has posted a 50.2 per cent rise in net profit to Rs 135.54 crore in the third quarter of current financial year on the back of higher core and fee-based income.
Net profit was Rs 90.25 crore in the same period last year. Total income rose by 30.14 per cent to Rs 2020.78 crore for the three-month period ended December 31, 2011.
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"Rise in net profit is attributed to higher income from core business along with rise in fee-based income," BoM Chairman and Managing Director A S Bhattacharya said today.
Net interest income of the state-run lender rose by 31 per cent to Rs 1871.07 crore during the period under review in comparison to Rs 1429.29 crore reported a year ago.
Similarly, the bank improved net interest margin to 3.28 per cent in the third quarter as compared to 2.97 per cent earlier. "We will be able to maintain our margin above 3 per cent for the whole fiscal," Bhattacharya said.
While the cost of deposit of the bank stood at 6.45 per cent by end of December, it was at 11.41 per cent for yield on advances.
In the meantime, the bank has shown improvement in asset quality during the quarter. "Our gross NPA has declined to 2.06 per cent from 3.15 per cent a year ago and net NPA has improved to 0.54 per cent from 1.85 per cent," he said.
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The provision coverage ratio has also improved to 85.96 per cent during the period from 60 per cent earlier.
During Q3, total deposit grew 11.43 per cent to Rs 69,926 crore, while advances rose by 16 per cent to Rs 50, 751 crore. "Our total business is likely to touch Rs 1,40,000 crore by end of this fiscal," Bhattacharya said.
Bhattacharya said the bank was likely to be get capital infusion from the Government soon as he had received a letter in this regard from the Finance Ministry.