New Delhi: Shares of Bank of Maharashtra zoomed over 14 per cent on Tuesday after the company reported a four-fold jump in its net profit in the second quarter ended September 30.
The bank's shares advanced 13.33 per cent to close at Rs 11.05 on the BSE. During the day, the scrip climbed 17.94 per cent to Rs 11.50.
At the NSE, it jumped 14.35 per cent to close at Rs 11.15.
The state-owned bank on Tuesday said its net profit jumped over four-fold to Rs 114.66 crore in the second quarter ended September 30 due to fall in bad loans, leading to decreased provisioning requirement.
The bank had registered a net profit of Rs 27 crore in July-September quarter of the previous fiscal.
Bank of Maharashtra's total income rose to Rs 3,295.91 crore during the second quarter of 2019-20 as against Rs 3,192.80 crore in same period of last year, it said in a regulatory filing.
The bank's asset quality also witnessed improvement, with the gross non-performing assets (NPAs) coming down to 16.86 per cent of the gross advances as on September 30, 2019 from 18.64 per cent as on September 30, 2018.
In absolute value, the gross NPAs of the bank were at Rs 15,408.51 crore as against Rs 16,872.84 crore a year ago.
Provisions for bad loans and contingencies came down to Rs 359.23 crore for the September quarter from Rs 941.71 crore a year ago.