Robust cash recoveries and upgradation of assets helped Bank of Maharashtra log a 247 per cent jump in net profit in the second quarter ended September 30, 2014.
The bank recorded a net profit of ₹163 crore , compared with ₹47 crore in the year-ago period.
The bank made cash recoveries of ₹217.51 crore (₹89.15 crore in the year-ago period). It saw upgradation in assets of ₹425.92 crore (₹118.61 crore). Net interest income (the difference between interest earned and expended) was up 13 per cent at ₹992 crore (₹876 crore).
Non-interest income, which includes profit from the sale of investments and recovery in written-off accounts, rose 21 per cent to ₹222 crore (₹183 crore).
Sushil Muhnot, Chairman and Managing Director, said the bank is in a consolidation mode, whereby it has de-grown the corporate loan book and stepped up loans to the retail, agriculture and MSE segments.
The bank is focusing on high-yielding loans and is also shedding high-cost deposits, he added.
Though the bank managed to make handsome recoveries, the net rise in NPAs, post-reduction in bad loans, was ₹589 crore.
Muhnot said his bank will mop up about ₹500 crore by issuing Basel III-compliant additional Tier I bonds in the next couple of months.
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