Bank of Maharashtra share hits all-time low after RBI rejects lender's proposal for setting off Rs 7,360-cr loss
BusinessToday.In October 10, 2019
Bank of Maharashtra share price hit its all-time low in early trade today after banking regulator Reserve Bank of India (RBI) rejected proposal of the state-run lender to settle its accumulated losses of Rs 7,360.29 crore against the balance lying in its share premium account and revenue reserve account.
Earlier this year, the bank's board and shareholders has cleared setting off accumulated losses of Rs 7,360.29 crore as of March 31, 2019, against the balance lying in share premium account and revenue reserve account of bank as on date of set-off.
Bank of Maharashtra share price fell to its all time low of Rs 10.34 compared to the previous close of Rs 10.80 on the BSE. The public sector bank stock has lost 5% in last four days. The midcap stock has lost 5% during last one year and fallen 29.68% since the beginning of this year.
However, of late, the bank has been reporting strong financial performance. The lender reported a net profit of Rs 81.10 crore for the June quarter of 2019-20 financial year as bad assets fell substantially.
The lender registered a net loss of Rs 1,119 crore during the year-ago period. Total income in the first quarter rose to Rs 3,191.88 crore from Rs 2,987.10 crore in the same period of 2018-19, the bank said.
Gross non-performing assets (NPAs) were down to 17.90 per cent of gross advances at June-end 2019 from 21.18 per cent at the end of June 2018. For the quarter ended March 31 too, the state-run lender reported a standalone net profit of Rs 72.38 crore during the quarter ended March 31 on a year-on-year basis.
The lender had reported a standalone net loss of Rs 113.49 crore in the same period last year.
However, in the last fiscal, the bank reported a net loss of Rs 4,784 crore against a net loss of Rs 1,146 crore reported for the corresponding previous financial year.
"This increased loss is due to higher loan loss provisions on impaired assets. Increase in depreciation on revalued assets as per revised AS - 10. Increase in expenses due to wage revision provision of Rs 109.80 crore," the bank said.
By Aseem Thapliyal