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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Under its current CEO, the lender has witnessed a turnaround in the last four years. Yet, its rising exposure to corporate loans and high levels of stressed assets remain concerns.
April 2017. Bank of Maharashtra had just declared its fourth quarter results for the 2016-17 fiscal year and they were not a pretty sight. Its gross bad loan ratio was at 16.93%, and had risen by 65% over a year. The bank’s capital was eroding fast and its capital adequacy ratio had plummeted to 11.18%—well below the Reserve Bank of India’s 12% minimum. The net loss for the year was over Rs 1,300 crore; every quarter in the fiscal had thrown up a loss.
A concerned RBI had no option but to intervene. With depleting capital, rising bad loans and …
