Bank of Maharashtra Q1 Results: Asset quality stable but slippages rise from March

State-run Bank of Maharashtra Ltd. reported results for the April to June quarter on Tuesday, July 15.The lender’s Net Interest Income, or core income earned increased by 18% on a year-on-year basis to ₹3,292 crore from ₹2,800 crore last year.
Net profit for the period increased by 23% to ₹1,593 crore from ₹1,293 crore. The growth in net profit during the quarter is despite a lower other income compared to the same quarter last year.
Asset quality for the period remained unchanged on a sequential basis. Gross NPA remained unchanged at 1.74%, while net NPA also remained unchanged at 0.18% from the March quarter.
Provisions for the quarter stood at ₹867.41 crore from ₹983.29 crore in the previous quarter.Slippages for the period have seen a rise on a sequential basis. Total slippages stood at ₹727 crore at the end of the June quarter, compared to ₹660 crore in the March quarter.

In its post earnings release, Bank of Maharashtra saw business growth of 14% from last year to ₹5.46 lakh crore, while deposits went up by 14% from the same quarter last year to ₹3.05 lakh crore.

Gross Advances were up 15.34% on a year-on-year basis to ₹2.41 lakh crore.

Net Interest Margins during the June quarter stood at 3.95%, which is nearly the same as 3.97% it reported in the June quarter last year and 4.01% reported during the March quarter.

Shares of Bank of Maharashtra have surged post the earnings announcement, currently trading 2.2% higher at ₹57.38.