Bank of Maharashtra (BoM) reported its highest ever quarterly net profit at ₹840 crore, with the bottomline being boosted by healthy growth in both net interest income and non-interest income and sharply lower tax burden.
The Pune-headquartered public sector bank’s net profit in the reporting quarter jumped 136 per cent year-on-year (y-o-y)vis-a-vis ₹355 crore in the year ago period.
The bank’s board recommended a dividend of ₹1.30 per equity share of ₹10 each fully paid up (that is 13 per cent).
In the reporting quarter, net interest income (difference between interest earned and interest expended) is up 36 per cent y-o-y at ₹2,187 crore (₹1,612 crore in the year ago quarter).
Non-interest income, comprising fee-based income, treasury income, and recovery from written-off accounts, rose 57 per cent y-o-y at ₹822 crore (₹522 crore). Recovery in written-off accounts soared 345 per cent to ₹488 crore (₹110 crore).
Provision for tax
Provision for tax (net of deferred tax asset) declined 85 per cent y-o-y to ₹71 crore (₹458 crore).
However, provisions & contingencies (other than taxes), including provisions towards non-performing assets (NPAs), standard/ restructured assets and non-performing investments shot up to ₹945 crore (₹365 crore).
As at March-end 2023, gross non-performing assets (NPAs) declined to 2.47 per cent of gross advances against 3.94 per cent as at March-end 2022. Net NPAs position improved to 0.25 per cent of net advances against 0.97 per cent.
Net interest margin
Net interest margin (NIM) improved to 3.78 per cent from 3.17 per cent.
AS Rajeev, MD & CEO, expects the bank to reach a total business (deposits plus advances) of ₹5-lakh crore in FY24 from ₹4.09-lakh crore in FY23 and sustain NIM above 3.50 per cent.
The bank expects advances to grow by 20-22 per cent in FY24 against 30 per cent growth in FY23.