Bank of Maharashtra posts a profit in Q4 on better asset quality

State-run Bank of Maharashtra (BoM) Monday reported a net profit of Rs.72.38 crore in the quarter to March as against a net loss of Rs.113.51 crore in the year-ago period.

The bank, however, reported a net loss of Rs.4,783.88 crore for full year to March 2019, more than four times the loss it had reported in FY18 at Rs.1,145.65 crore.

Total income rose to Rs.3,160.79 crore in the reporting quarter from Rs.3,094.46 crore in the same period last fiscal year, the lender said in a statement.

Gross non-performing assets improved to 16.40% from 19.48%, while net NPA more than halved to 5.52% from a high 11.24%.

The lender restructured 7,556 MSME accounts amounting to Rs.411.69 crore during the year and treated them as standard assets.

In the reporting quarter, the bank classified loans worth Rs.410.62 crore as fraud as per the RBI guidelines and holds 100% provisions for them. For the entire year, it had classified Rs.1,448 crore as fraud.

Of the 17 accounts referred by the RBI to bankruptcy tribunals, the bank sees uncertainty in recovery and has made 100% provisions worth Rs.4,857 crore.

During the year, the bank made Rs.387.53 crore in provisions for all performing and non-performing accounts of the bankrupt IL&FS, the bank said.