Member access

4-Traders Homepage  >  Shares  >  NATIONAL STOCK EXCHANGE OF INDIA  >  Bank of Maharashtra Ltd    MAHABANK   INE457A01014

BANK OF MAHARASHTRA LTD (MAHABANK)

4
End-of-day quote. End-of-day quote NATIONAL STOCK EXCHANGE OF INDIA - 05/28
38.9 INR   +0.91%
04/27 BANK OF MAHARAS : BOM – UIIC team up for Prime Minister Suraks..
04/21 BANK OF MAHARAS : BOM – LIC team up for PMJJBY
04/21 BANK OF MAHARAS : Awards Dr. Babasaheb Ambedkar Trophy to its Khamga..
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Bank of Maharashtra : tarting Stalled Projects is our Priority'

05/17/2015 | 12:01am US/Eastern

Bad loans at banks are beginning to bottom out as the economy recovers and companies respond to measures taken by the Reserve Bank of India. The RBI may cut its repo rate by another 50-75 basis points, RK Gupta, executive director, Bank of Maharashtra, tells Sumit Sharma:

What's your outlook on the economy?

The World Bank and IMF predict 7.5 per cent growth. There's positive sentiment following measures such as the Insurance Bill, coal and spectrum auctions, and steps to restart stalled projects. The RBI has also announced measures such as extension of DCCP by two years or 5/25 refinance scheme to help restart stalled projects. CAD is manageable, CPI is declining and interest rates are falling. The environment is positive.

But credit demand remains low. When do you see it picking up?

The authorities have done their bit. It's for the corporate to react. We expect it to pick up from June.

How do you see base rate cuts impacting the economy?

It's too early to assess it. As the rate of interest falls, credit demand is expected to pick up. All other banks will have to start responding to the cuts from large banks.

What's holding up other PSBs from cutting rates?

While we can cut our lending rates, to keep margins intact a corresponding reduction in deposit rates too should take place. Incremental cost of deposit can come down but overall cost can't fall in a short period. Any rate cut in advances portfolio impacts the entire credit portfolio. Hence, the banks have not been able to pass it on immediately. Now as cost of deposit comes down, other banks will lower their rates.

Do you see more repo rate cuts from RBI?

Yes. CPI was a major concern and as the inflation falls much below the expected levels, probably the RBI may take a view before the next policy. I expect two to three 25 basis points each cut in repo rates. So, about 50-75 basis points cut.

Deposit growth remains muted. How do you increase it, especially when there is pressure to cut rates?

Since the credit demand was not there, most banks, including ours, didn't require more deposits. So we substituted

our high-cost deposits with normal cost deposits or through the CASA. Deposits and liquidity is available in the market. Our cost of deposits has already come down in the fourth quarter by 4-5 basis points compared with the earlier quarter.

NPAs are a problem for most PSBs. What is the way out?

As of March, NPAs are bottoming out. Whatever NPAs we recover will directly benefit our profitability. Because of economic recovery and steps taken by the Reserve Bank of India to help stalled projects, the performance of companies will improve as also their profitability. It will demand more working capital and companies will come out of distress.

But infra projects are still stuck.

Due to the nature of the business, infra projects will take at least another six months to come on line. Starting stalled projects is a priority. According to estimates, `18 lakh crore is stuck.

What about capital raising plans? The government owns 80%.

As of March ending, our capital adequacy is comfortable, at 11.60 per cent. If required, we'll take a view in the third quarter on how to raise capital through follow-on offers, QIP or bonds.

(c) 2015 Express Network Pvt Ltd. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

React to this article
Latest news on BANK OF MAHARASHTRA LTD
05/17 BANK OF MAHARASHTRA : tarting Stalled Projects is our Priority'
05/15 BANK OF MAHARASHTRA : Profit rises 98% in q4
05/14 BANK OF MAHARASHTRA : to raise Rs. 800 crore via share issue
05/14 BANK OF MAHARASHTRA : Dalmia Bharat rallies 4.6% on back of turnaround
05/14 BANK OF MAHARASHTRA : Q4 net profit at Rs.112.7 crore
04/30 BANK OF MAHARASHTRA : Bom-lic team up for pmjjby
04/29 RBI SLAPS Rs4.5 CRORE PENALTY ON 3 BANKS FOR VIOLATING NORMS
04/29 BANK OF MAHARASHTRA : Nashik Municipal Corp gets govt nod to mortgage its proper..
04/29 BANK OF MAHARASHTRA : Nashik: Banks cut provision for crop loan by 10%
04/28 BANK OF INDIA : 2.37 lakh people in dist open bank accounts
Advertisement
Chart
Duration : Period :
Bank of Maharashtra Ltd Technical Analysis Chart | MAHABANK | INE457A01014 | 4-Traders
Income Statement Evolution
More Financials