BANKS
Bank of Maharashtra Q2 net up 72% to Rs 920 crore
Bank of Maharashtra’s asset quality stayed stable and net interest income jumped as it reported a standalone net profit of Rs 919.8 crore in Q2, up 72% from Rs 535.1 crore a year ago.
Bank of Maharashtra’s asset quality stayed stable and net interest income jumped as it reported a standalone net profit of Rs 919.8 crore in Q2, up 72% from Rs 535.1 crore a year ago.
Bank of Maharashtra’s asset quality stayed stable and net interest income jumped as it reported a standalone net profit of Rs 919.8 crore in the fiscal second quarter, up 72% from Rs 535.1 crore a year ago.
According to Bank of Maharashtra managing director and CEO AS Rajeev, the state-owned lender has no plans for an equity capital offering in FY24 but may consider raising debt capital based on market conditions.
NII and NIM
Bank of Maharashtra's net Interest Income (NII), which is the difference between interest earned and interest expended, surged 28.9% to Rs 2,432 crore in the quarter ended 30 September 2023 compared to Rs 1,887 crore in the year-ago period.
Net interest margin (NIM) improved to 3.89% from 3.55% in Q2 of FY23 and 3.86% in the preceding quarter.
Asset Quality
The bank's asset quality improved, with gross non-performing assets (NPAs) declining to 2.19% in the September 2023 quarter, from 2.28% in the preceding quarter and 3.40% a year ago.
Net NPAs or bad loans eased to 0.23% from 0.24% a quarter ago and 0.68% a year ago.
PCR
The provision coverage ratio (PCR) stood at 98.4%, up from 95.04% a year ago.
Provisions for NPAs rose to Rs 531 crore in Q2 of FY24, from Rs 597 crore in the same quarter of the previous year.
Non-interest Income
Non-interest income, comprising fees, commissions, treasury income and recoveries, rose 33% year-on-year to Rs 668 crore.
Loans
The bank’s loan book expanded 23.5% YoY to Rs 1.83 lakh crore in Q2 of FY24, with a projected loan book growth of 20-21% for the current financial year.
Deposits
Total deposits rose 22.2% year-on-year to Rs 2.39 lakh crore.
However, the share of low-cost deposits — current account and savings account (CASA) — fell to 50.71% from 56.27% a year ago.
The credit-to-deposit ratio improved to 76.52%.
Total Business
The bank's total business grew 22.7% year-on-year to Rs 422,420 crore.
Capital Adequacy
The bank’s capital adequacy ratio was 17.61%, with Tier-I at 13.72%, as of 30 September 2023. This was at 16.71% a year ago and 18.07% a quarter ago.
With retained profits, the capital adequacy is projected to reach 19% by March 2024, Rajeev said.
