Fraud-hit Bank of Maharashtra net up, of two government banks down

Fraud-hit Bank of Maharashtra closed its books with higher net profit last year compared to corresponding period of the previous year while two other government-owned banks closed with negative growth in their bottomline.

Bank of Maharashtra closed its last year's books with a net profit of Rs.450.69 crore up from Rs.385.97 crore posted in 2013-14. last year, Bank of Maharashtra earned a total income of Rs.13,671.42 crore up from Rs.12,850.85 crore. However the bank's net NPA went up to 4.19 percent of gross advances up from 2.03 percent as on March 31, 2014.

According to the bank, a sum of Rs.1,249.51 crore weas classified and a sum of Rs.885.95 crore has been provided towards that. Similarly a sum of Rs.20 crore has been provided in the books last year towards some investments, classified as fraud, having a book value of Rs.32 crore. The bank board has recommended a dividend of eight percent for last year.

Bank of Maharashtra's scrip closed at Rs.37.90 on Thursday as compared to the closing price of Rs.37.25 on Wednesday. On the other hand, Indian Bank closed last year with a total income of Rs.17,216.29 crore up from Rs.16,620.88 crore earned during 2013-14. Speaking to reporters here, its managing director and chief executive officer T.M.Bhasin said the bank posted a net profit of Rs.1,005.17 crore down from Rs.1,158.94 crore posted during 2013-14.

last year Indian Bank's total business (deposits plus advances) stood at Rs.2,98,057 crore up from Rs.2,86,633 crore. Bhasin said the bank shed Rs.8,820 crore worth of high cost deposits last year. During the final quarter of last fiscal, the bank posted a net profit of Rs.206.17 crore down from Rs.271 crore posted during corresponding period of the previous year.

According to Bhasin, the bank had made provisions of Rs.611 crore during last quarter of the previous year up from Rs.517 crore in the third quarter. "last year there was an income tax refund of Rs.110 crore which came down to Rs.40 crore this year," Bhasin cited as the reasons for lower profit. He said the NPA recovery last year was Rs.848.08 crore as against Rs.627 crore in 2013-14.

Bhasin said the bank's net NPA went down to 2.50 percent at the end fourth quarter of last year from 2.74 percent in the previous quarter. Indian Bank last year restructured loans worth Rs.3,335 crore. The bank has proposed to declare 42 percent dividend to its equity shareholders. Indian Bank's scrip closed at Rs.157.75 on Thursday as against a closing price of Rs.154.90 on Wednesday.

Oriental Bank of Commerce posted a dismal results for last fiscal with its net profit falling drastically to Rs.497.08 crore from Rs.1,139.41 crore posted in 2013-14. Its total income went up from Rs.20,962.75 crore for the year ended March 31, 2014 to Rs. 22,082.78 crore for the year ended March 31, 2015. 

The bank's provisions stood at Rs.3,311.86 crore up from Rs.2,575.07 crore in 2013-14. Its shares closed at Rs.212.80 on Thursday up from Rs.193.65 the closing price on Wednesday.