Bank of Maharashtra disappointed the street with poor financial numbers for Q2FY14.
Bank of Maharashtra disappointed the street with poor financial numbers for Q2FY14. Its net profit slumped by 71.78% on YoY basis to stand at Rs 46.85 crore. It witnessed 31.32% increase in total income which stood at Rs 3196.56 crore in Q2 September 2013 over Q2 September 2012. The Net Interest Income (NII) in the same period increased by 21.87% year on year to Rs 876.16 crore in Q2FY14 against 718.94 in Q2FY13.
Non Interest Income grew to Rs 183.07 crore showing a year on year growth of 3.31%. The growth in Non Interest Income (NIM) is driven mainly by growth across the fee income streams i.e transaction banking and retail banking fees.
Bank net profit decreased mainly due to increase in Gross NPA. Bank reported a jump in Gross NPA which came in at 89.60% to Rs 2450.48 crore in year on year (YoY) against Rs 1292.45 crore in Q2FY13 and 63.39 % Q-o-Q. Bank of Maharashtra's ratio of net non-performing assets (NPA) to net advances stood at 1.76% as on 30 September 2013, compared with 0.80% as on 30 June 2013 and 0.88% as on 30 September 2012.The bank's ratio of gross NPA to gross advances stood at 2.77% as on 30 September 2013, compared with 1.80% as on 30 June 2013 and 2% as on 30 September 2012.
Provisions and contingencies rose by 45.25% to Rs 323.23 crore in Q2 September 2013 over Q2 September 2012.The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.71% as on 30 September 2013, compared with 10.76% as on 30 June 2013.
The stock is not fare in terms of RoA and asset quality also. The stock hit a high of Rs 40.60 and a low of Rs 38.50 during the day. Considering all factors like tightened liquidity throughout the quarter and tough macro-economic environment and scrip had underperformed the market in past one quarter. Stock is expect selling pressure after the Q2result,We suggest investors to tread in a cautious manner in the counter.
