Page 26 - Banking Finance August 2017

PRESS RELEASE

Risk-weighted Assets were Rs. 690,370 crore (Rs. 551,676 as on June 30, 2017, as against 1.05% as on March 31, 2017,
crore as on June 30, 2016). and 1.04% as on June 30, 2016. During the quarter
endedJune 30, 2017, of the total increase in gross NPAs,
Network 60%pertained to the agricultural segment. Recoveries from
As of June 30, 2017, the Bank's distribution network was at agricultural advances were impacted during the quarter
4,727 branches and 12,220 ATM sacross 2,666 cities / towns byborrower expectations of farm loan waivers arising out of
as against 4,541 branches and 12,013 ATMs across 2,593 policy announcements in certain states. These loan waiver
cities / towns as of June 30, 2016. Of the total branches, policies are in the process of being finalised and implemented.
52% are in semi-urban and rural areas. As a prudent measure, the Bank has enhanced specific
provision coverage for its non-performing agricultural
Asset Quality advances. Net non-performing assets were at 0.4% of net
Gross non-performing assets were at 1.24% of gross advances advances as on June 30, 2017.
QNB Group Commences Operations in India

QNB Group, the largest financial institution in the Middle East and Africa, has recently commenced operations in the
city of Mumbai, the economic capital of the Republic of India. The start of the Group's operations in the Republic of
India comes in support of its vision to become a leading bank in the Middle East, Africa, and Southeast Asia by 2020, in
addition to establishing a foothold in highly competitive markets.

Through its new branch in India, the Group offers a full spectrum of banking products and services.The Group also offers
its rich experience in wealth management, investment portfolios, project finance, and the provision of smart banking
solutions and a range of innovative products and services designed to suit the requirements of the Indian market.
The Indian economy is the seventh largest in the world with an annual GDP of USD 2.3 tn in 2016. It is the world's
second most populated country and the fastest growing major economy. It has expanding trade and population ties with
Qatar and the Middle East region more broadly. In particular, India is the third largest importer of liquefied natural gas
from Qatar.
It is worth mentioning that QNB recently topped The Banker magazine's and ranked Best Bank in the Middle East and
Africa by Tier 1 capital, as well as ranking 82nd among the Top 1000 World Banks. QNB Group's total assets reached USD
211 billion as at 30 June 2017, the highest ever achieved by the Group, and net profit for the six months ended 30 June
2017 reached USD 1.8 billion.
QNB Group's presence through its subsidiaries and associate companies extends to more than 31 countries across three
continents providing a comprehensive range of advanced products and services. The total number of employees is more
than 27,900 operating through more than 1,250 locations serving more than 21 million customers, with an ATM network
of more than 4,300 machines.

Bank of Maharashtra under PCA
In view of the high net NPAs (11.76%) as of 31.03.2017, it has been decided by RBI to put Bank of Maharashtra under
Prompt Corrective Action (PCA), which is one of the supervisory tools to ensure sound financial health of the Bank. Its
objective is to facilitate the Bank to take corrective measures to improve its health. The PCA framework is NOT intended
to constrain or restrict Bank's normal operations for the general public. On the contrary it is intended to encourage
banks to conserve capital and augment their operational efficiency.

During 2016-17 Bank has maintained capital adequacy of 11.18%, improved CASA share from 36.6% to 44.89%, posted
healthy rise of 47% in non-interest Income and recorded higher NPA recoveries. Shri R. P Marathe, MD & CEO of the
Bank said that the PCA will in no way impact Bank's existing business operations and assured that the Bank will rebounce
with renewed vigour and vitality.

26 | 2017 | AUGUST | BANKING FINANCE

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