Page 25 - Banking Finance October 017

PRESS RELEASE

Bank of Maharashtra waives processing fee on Home and Vehicle

loans till Dec 2017

Bank of Maharashtra has completely waived processing fees on Home and Vehicle loans effective from September 1,
2017 till 31st December 2017. The Bank also offers zero processing fees when someone transfers a home loan from
another bank during this festive offer period. These concessions are offered to enhance Bank's retail portfolio during the
ensuing festival season. The Bank recorded Q-o-Q stable growth in their home loan segment, while the Vehicle loan
segment saw growth of 28.22 % in Q1 FY 17-18 compared to the quarter ending March, 2017. Personal vehicles contribute
to the majority of the vehicle loan portfolio of Bank of Maharashtra.
The growth in the home loan portfolio was partially led by the Bank's efforts towards strengthening the government
initiatives to provide Housing for All by 2022 through the Pradhan Mantri Awas Yojana scheme. Under PMAY CLSS scheme
more than 1400 accounts are covered with total portfolio of Rs. 221 crores. Bank of Maharashtra was the first public
sector bank to reduce its lending rates by 5-15 basis points (bps) across loan tenures, following the 25 bps repo rate cut
by Reserve Bank of India in its bi-monthly Monetary Policy announced on 02.08.2017.
Bank of Maharashtra has customized its home loan and Vehicle loan schemes on the basis of potential customers' needs
in their intent to buy their own house. Since, the documentation requirements are simple, it is expected to encourage
a larger customer base to reap the benefits of the scheme. R.P. Marathe, MD&CEO, Bank of Maharashtra, informed "It
has always been our endeavour to extend the benefits of Policy initiatives to the common man. And in this festive season
we take immense pride in enabling customers across all economic strata,realize their dreams of buying a place they can
call home or owning a car. Meanwhile, we will continue to deepen our engagement with our stakeholders on the ground
to understand their needs and align our services accordingly so that we can ride the growth trajectory in this vertical".

The Bank has formed an exclusive task force at their zonal offices to ensure quick disbursals within a week's timeframe
for Housing Loans & 48 hours for Vehicle Loans.The Bank offers 0.25% discount for Vehicle Loan interest rate to existing
Housing Loan, MSME and Corporate Salary Account Holders.

IDBI Bank Reduce Losses and Receive Capital Infusion from GOI

Highlights of Q1 FY 18 (June 30, 2017) financial Y CASA increased by 25.93% to Rs. 81,837 crore as on June
results 2017 from Rs. 64,985 crore as on June 2016 and CASA is
Y Losses reduced by 73.34% from Rs. 3200 crore for QE 33.67% of Aggregate Deposits as on June 2017 as against
March 17 to ` 853 crore for QE June 17. 25.58% of Aggregate Deposits as on June 2016.
Y Provision for NPA reduced from Rs. 5333 crore for QE Y Bulk Term Deposits including Certificate of Deposits has
March 17 to ` 1069 crore for QE June 17. been lowered by 28.19% from Rs. 1,10,049 crore as
on June 2016 to Rs. 79,025 crore as on June 2017.
Y CRAR increased from 10.70% to 10.92%, CET1 improved
from 5.64% to 5.71% from QE March 17 to QE June Y Interest expenditure reduced from Rs. 5353 crore for
17. Further capital infusion by GOI of Rs. 1861 crore QE March 17 to Rs. 4609 crore for QE June 17. Cost of
on August 9, 2017 resulted in the improvement of CRAR Funds has been reduced by 92 basis points from 6.91%
to 11.69% and CET 1 to 6.49%. as on June 2016 to 5.99% as on June 2017.
Y Recovery and Upgradation improved from Rs. 1789 Y Interest on Deposits has come down from Rs. 4,268
crore during the QE March 2017 to Rs. 2118 crore crore in Q4 FY 2017 to Rs. 3,582 crore in Q1 FY 2018
during the QE June 2017. Fresh slippages is reduced to mainly on account of reduction of Bulk Deposits.
Rs. 7659 crore during Q1 FY 2018 compared to Rs. Y Operating profit stood at Rs. 877 crore for the QE June
11531 crore during Q4 FY 2017. Gross NPAs stood at 2017 against Rs. 1390 crore for the quarter ending
24.11% and Net NPA at 15.80% as on June 30, 2017. March 31, 2017.

24 | 2017 | OCTOBER | BANKING FINANCE

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