Comments
Bank of Maharashtra’s net profit soared 115 per cent year-on-year (yoy) in the fourth quarter on the back of healthy growth in net interest income, steep decline in loan loss provisions and reversal of provisions for standard/ restructured assets.
The Pune-headquartered public sector bank logged a net profit of ₹355 crore (₹165 crore in the year-ago period).
Net interest income increased by about 17 per cent year-on-year (yoy) to ₹1,612 crore (Rs 1,383 crore).
Related Stories
MSMEs need to step up efforts to make India ‘Aatmanirbhar’: Narayan Rane
Urges micro, small and medium enterprises Asks MSMEs to look to increase their share in overall GDPNon-interest income was down 58 per cent yoy to ₹522 crore (₹1,237 crore) due to decline in treasury income and miscellaneous income. Under this head, fee-based income was up 13 per cent yoy to ₹372 crore (₹329 crore).
Net interest margin improved to 3.17 per cent in the reporting quarter against 3.11 per cent in the year-ago quarter.
Loan loss provisions declined 59 per cent yoy to ₹568 crore (₹1,376 crore). The bank reversed provisions amounting to ₹118 crore for standard/ restructured assets.
NPAs down
Gross non-performing assets (GNPAs) declined to 3.94 per cent of gross advances as at March-end 2022 against 7.23 per cent as at March-end 2021.
Net NPAs declined to 0.97 per cent of net advances as at March-end 2022 against 2.48 per end as at March-end 2021.
The bank’s deposits were up about 16 per cent per cent yoy to stand at ₹2,02,294 crore as at March-end 2022 (₹1,74,006 crore as at March-end 2021).
The proportion of low-cost current account, savings account (CASA) deposits in total deposits improved to 57.85 per cent as at March-end 2022 against 53.99 per cent as at March-end 2021.
Gross advances rose about 26 per cent yoy to stand at ₹1,35,240 crore (₹1,07,654 crore). Within advances, growth was led by corporate & other advances (up 38 per cent yoy); followed by retail (up 24 per cent); agriculture (17 per cent); and MSME (14 per cent).
AS Rajeev, MD & CEO, BoM, expects 16-18 per cent growth in advances and 13-15 per cent growth in deposits in FY23.
Referring to the bank’s board giving approval to raise up to ₹5,000 crore, Rajeev emphasised that capital is needed to support the projected loan growth, which in absolute terms would amount to ₹25,000-30,000 crore, in FY23.
Moreover, the bank wants to maintain minimum capital adequacy ratio (CAR) at 15 per cent at any given point of time. As at March-end 2022, BoM’s CAR stood at 16.85 per cent (14.49 per cent as at March-end 2021).
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.