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Pune: Bank of Maharashtra expects early resolution for DSK cases

During a press meet organised by the bank on Thursday to announce the first quarter results of the 2021-22 financial year, AS Rajeev, managing director and chief executive director of the bank, said their application is pending before the tribunal.

By: Express News Service | Pune |
July 22, 2021 9:14:36 pm
Bank of Maharashtra is one of few banks, which has moved the NCLT for resolution of their pending dues. (File photo)

Bank of Maharashtra hopes for an early resolution of the cases before the National Company Law Appellate Tribunal (NCLAT) pertaining to the DS Kulkarni Group.

During a press meet organised by the bank on Thursday to announce the first quarter results of the 2021-22 financial year, AS Rajeev, managing director and chief executive director of the bank, said their application is pending before the tribunal.

Bank of Maharashtra is one of few banks, which has moved the NCLT for resolution of their pending dues. Multiple applications of the bank are pending before the tribunal and as Rajeev said, they are expecting resolution of them soon. Insolvency of the DS Kulkarni Group has seen non-performing assets of many banks, including Bank of Maharashtra increasing.

The first quarter results of the bank showed an increase of 106 percent in net profit to Rs 208 crore as against Rs 101 crore of the first quarter of the last financial year. Similarly, operating profit showed a growth of 56 percent on year-on-year basis to Rs 1,110 crore for the current fiscal as against Rs 710 crore of the last fiscal’s first quarter.

Despite the business slowdown due to pandemic-related restrictions, the gross NPA of the bank declined to 6.35 percent as on June 30, 2021, which was 10.93 per cent as on June 30, 2020. Gross NPA for the quarter ending on March 31, 2021, was 7.23 per cent.

Net NPA for the bank has reduced to 2.22 per cent at the end of the current quarter, which was 4.1 per cent at the end of the first quarter of the last fiscal. The provision coverage ratio improved to 90.7 per cent as on June 30, 2021, as against 85.62 per cent as on June 30, 2020. The same was 89.86 per cent as on March 31, 2021.

During the quarter, the bank made Covid-19 provision of Rs 285 crore. The bank holds cumulative Covid-19 provision, including interest of Rs 973 crore. The bank has reported total business of Rs 2,84,970 crore with gross advance of Rs 1,10,592 crore, of which advance for retail agriculture and MSME sector accounted alone for Rs 66,492 crore.

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