*Bank of Maharashtra's (NSE: MAHABANK) Profit up 17.91% YoY; Beat street's estimate on all front!*
Bank of Maharashtra posted a good set of Q1FY21 earnings performance. Bank's consolidated Net Interest Income (NII) increased by 9.14% at Rs. 1,088.16 Crs and the bank reported a consolidated net profit of Rs. 105.07 Crs vs. Rs. 89.11 Crs year-ago, jump of 17.91%.
Its GNPAs stood at 10.93% in Q1FY21 vs. 12.81% in Q4FY20 which showed improvement in the asset quality decreasing GNPAs by 188bps. The Bank reported NNPA at 4.10%, a decrease of 67bps on a sequential basis.
Provisions and contingencies
The lender has provided provisions and contingencies of Rs. 608.94 Crs as compared to Rs. 920.72 Crs year ago, a dip of 33.86%.
Bank has made provision of Rs. 275 Crs in Q1FY21 towards COVID-19 Regulatory Package Provision and cumulative provision of Rs. 425 Crs as on June 30, 2020, vs. regulatory requirement of Rs. 75 Crs at 10%.
The provision coverage ratio has improved to 85.62% as of June 30, 2020, vs. 81.24% for a year-ago period.
If we look at the specific consolidated revenue segments of the bank, treasury operations increased by 8.22%, Retail banking revenue grew by 38.11%, and Corporate/ wholesale banking revenue de-grew by 25.68% whereas other banking business decreased by 67.96% on YoY basis.
Deposits grew by 10.11% whereas advances grew by 10.51% respectively on a YoY basis.
Capital Adequacy Ratio (Basel III) as on June 30, 2020, stood at 13.21%. Liquidity Coverage Ratio stands at 232.33%.