Bank of Maharashtra Q4 net jumps 115 per cent to ₹355 crore

BoM Chief expects 16-18 per cent growth in advances and 13-15 per cent growth in deposits in FY23

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).

Non-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).

Published on


April 28, 2022