Bank of Maharashtra has reported a 45% year-on-year jump in its net profit to Rs 1,218 crore for the quarter ended March amid a fall in bad loans and rise in interest income. 

The bank’s board has also approved plans to raise up to Rs 7,500 crore. In a regulatory filing, the state-owned lender said the capital raise will be through a follow-on public offer or rights issue, qualified institutional placement (QIP) issue, or any other mode or through issue of BASEL III Compliant Tier I and Tier II bonds or such other securities as may be permitted under applicable laws.

Total Income 

During the fiscal fourth quarter ended March 2024, the bank's total income increased to Rs 6,488 crore compared to Rs 5,317 crore a year ago.

NII and NIM

The bank’s net interest income (NII) rose 18.2% YoY to Rs 2,584 crore versus Rs 2,187 crore a year ago.

Net interest margin (NIM) stood at 3.97%, up from 3.78% last year.

Asset Quality

On the asset quality side, the lender's gross non-performing assets (NPAs) declined to 1.88% as of 31 March 2024, from 2.47% a year ago. 

Net NPAs also declined to 0.20% of the advances from 0.25% last year.

Provision Coverage Ratio 

The fall in bad loans ratio helped cut the provisions towards NPAs for Q4FY24 to Rs 457 crore as against Rs 545 crore a year ago. 

Provision coverage ratio stood to 98.34%.

Loan Growth

The bank’s loan book grew 16.30% to Rs 2.03 lakh crore versus Rs 1.75 lakh crore a year ago. 

Deposits 

Deposits of the bank increased 15.66% to stand at Rs 2.7 lakh crore versus Rs 2.34 lakh crore last year.

Dividend

The bank's board has recommended a dividend of Rs 1.40 per share or 14% of Rs 10 face value out of the net profit for the year ended 31 March 2024. 

Capital Adequacy 

The capital adequacy ratio of the bank declined to 17.38% from 18.07% at the end of FY23.

Branch Expansion

Total branches of the bank increased to 2,489 in March 2024 from 2,203 a year ago.