State-run Bank of Maharashtra is expecting only Rs 1,000 to 1,500 crore of its total advances to come up for one-time restructuring under the Reserve Bank of India’s scheme before December 31, its managing director and CEO A S Rajeev said. The lender had earlier estimated around Rs 3,000-4,000 crore from its moratorium book to come under one-time restructuring. However, over a period of time the moratorium book itself came down drastically from 27% in March to 15-16% ( Rs 14,000-15,000 crore) as of end August, he said.
“We had earlier expected that 15-20% of the total moratorium book will go for restructuring. But now we think only Rs 1,000-1,500 crore from our total advances will come up for restructuring,” Rajeev told PTI.
The bank’s total advances stood at Rs 1,03,408 crore as on September 30, 2020. In August, the Reserve Bank of India had announced one-time restructuring for personal and corporate borrowers affected by COVID-19 related stress. Under the scheme, the resolution has to be invoked by December 31, 2020. So far, the lender has restructured 800 small accounts, including MSMEs, worth Rs 40 crore, under the scheme.
In the quarter ended September 30, 2020, the Pune-based bank reported a 13.44% growth in its standalone profit after tax at Rs 130 crore as against Rs 115 crore in the same quarter of the previous fiscal. On a consolidated basis, its net profit stood at Rs 130.44 crore in the second quarter of FY21, compared to Rs 115.15 crore last year in the same quarter.
The growth in profit was on account of higher net interest income, lower bad loan provisioning and reduction in operating expenses.