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Bank of Maharashtra crosses over to a mid-sized status

Bank of Maharashtra crossed the biz level of 1.5 lakh crores. The bank posted a net profit of Rs 306.47 crores for the six month period ended September 30.

, ET Bureau|
Updated: Oct 23, 2012, 06.59 PM IST
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PUNE: Bank of Maharashtra, the lead bank for the state of Maharashtra, crossed the business level of 1.5 lakh crores. The bank posted a net profit of Rs 306.47 crores for the six month period ended Sept 30, 37.76% up compared to the same period last year, its chairman and managing director Narendra Singh announced at Pune.

The figure of 1.5 lakh crore is the benchmark for a bank to be considered as a mid-sized one. Banks with businesses of 3 lakh crores and above are classified as large sized banks.

An analysis done by The Economic Times in the last quarter revealed a drop in profitability and asset quality of most mid-sized banks. Higher interest rate, lower credit off take and dented investor sentiment, were contributors to that performance. CASA ratio - savings and current account deposits as a percentage of total deposits - had also declined for most banks by about 108 basis points (bps) on average. The net NPAs also increased across the banks.

Bank of Maharashtra performed better on all parameters compared to that. It saw a drop in gross NPA from 2.15% as on Sept 2011, to 2% now, while many other mid-sized banks saw a rise in NPAs beyond 2%. The bank also added 49 branches to take its total branch count to 1638. Mr Singh said the bank will have operations in all states after starts branches in Nagaland and Manipur in a couple of months. "We are also planning to expand abroad and waiting for the permission from RBI." He said the bank is ready to expand to any countries wherever it gets permission.

While it added over 500 employees, its business per employee crossed over to Rs 10.99 crore from Rs 8.61 crore a year ago.

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