Mumbai - State-owned Bank of Maharashtra on Saturday reported a massive 56 percent drop in net profit at Rs 117.82 crore in the June quarter due to a steep threefold increase in non-performing assets.

Profit after tax stood at Rs 266.33 crore in the corresponding quarter last year.

In the quarter, the asset quality deteriorated with gross NPAs rising to 4.23 percent from 1.80 percent, while net NPAs increased to 2.94 percent as against 0.80 percent, the bank said in release.

The NPA provision coverage ratio stood at 49.73 percent.

The net interest margins stood at was 2.70 percent in the reporting quarter.

Net interest income, which is the difference between interests paid on deposits the interest earned from lending, was tad one percent up to Rs 914.54 crore in the period from Rs 908.02 crore year-ago.

Its capital adequacy ratio under Basel III stood at 10.75 percent.

Total business of the bank rose 8.88 percent to Rs 2,05,200 as on June 30, 2014 from Rs 1,88,457.09 crore.

Deposits grew 10.35 percent to Rs 1,16,365 crore as on June 30, 2014 from Rs 1,05,447 crore. Advances increased 7.02 percent to Rs 88,835 crore from Rs 83,010 crore same period last year. (PTI)