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The Bank of Maharashtra in its quarterly financial result reported an increase in net loss by seven fold during the December-end quarter. The state-owned bank reported a net loss of Rs 3,764.26 crores during the quarter under review, as against a net loss of Rs. 596.70 crores in the same period a year ago.
The bank saw a significant spike in provisions due to higher non-performing assets (NPA) ratio. The provision for the bad loans massively surged from Rs. 1,343.62 crores in the Q3 FY18 to Rs. 4,538.28 crores in the quarter under discussion.
However, the bank’s asset quality improved, with gross NPAs declining to 17.31% of the gross advances as on December 2018 as against 19.05% in the corresponding quarter a year ago. Net NPAs also slide down to 5.91% of the net advances during the Oct-Dec quarter from 12.17% in the year-ago period.
