Bank of Maharashtra (BoM) expects a 10-20 basis points improvement in the current account, savings account (CASA) deposits due to the return of ₹2,000 banknotes by the public.
The Pune-headquartered public sector bank has seen accretion of deposits amounting to ₹128 crore so far due to the return of ₹2,000 notes, according to Asheesh Pandey, Executive Director.
On May 19, 2023, the RBI decided to withdraw ₹2000 denomination banknotes as they are not commonly used for transactions, and the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. The central bank said the withdrawal of these notes is in pursuance of its “Clean Note Policy” .
Pandey expects recoveries from stressed loans, including written-off accounts, to increase in FY24 as economic prospects are seen improving.
The bank’s recovery from written-off accounts rose 47 per cent to ₹943 crore in FY23 from Rs 642 crore in FY22. Recovery from/ upgradation of loan accounts stood at ₹1,132 crore (₹1,517 crore in FY22).
The bank on Friday issued loan sanction letters aggregating about ₹5,700 crore to 500-odd customers in the Mumbai zone as part of its customer outreach programme.