Bank of Maharashtra Q3 Profit Jumps 34% to Rs 1,036 Crore
Jan 16, 2024 17:50
Bank of Maharashtra reports a 34% rise in Q3 net profit to Rs 1,036 crore driven by improved interest income and reduced bad loans. Read more about BoM's financial performance.
New Delhi, Jan 16 (PTI) State-owned Bank of Maharashtra (BoM) on Tuesday posted a 34 per cent rise in net profit to Rs 1,036 crore in the third quarter ended December 2023 due to improvement in interest income and a decline in bad loans.
The Pune-based lender had posted a net profit of Rs 775 crore in the same quarter a year ago.
Its total income increased to Rs 5,851 crore during the quarter under review against Rs 4,770 crore in the same period last year.
Speaking about quarterly numbers BoM managing director AS Rajeev said the net interest income (NII) grew by 24.56 per cent to Rs 2,466 crore against Rs 1,980 crore in the year-ago period.
The bank earned an interest income of Rs 5,171 crore during the quarter compared to Rs 4,129 crore a year ago.
Rajeev further said operating profit has shown a growth of 27.32 per cent to Rs 2,012 crore from Rs 1,580 crore in Q3 FY23.
The bank was able to reduce gross non-performing assets (NPAs) to 2.04 per cent of the gross loans by the end of December 2023 from 2.94 per cent a year ago.
Similarly, its net NPAs or bad loans came down to 0.22 per cent from 0.47 per cent at the end of the third quarter of the previous fiscal.
Its provision coverage ratio improved to 98.40 per cent from 97.18 per cent at the end of December 2022.
Net interest margin (NIM) of the bank rose to 3.95 per cent from 3.60 per cent in the same quarter a year ago.
Going forward, Rajeev said, the NIM is expected to be in the range of 3.75-4 per cent in the fourth quarter.
The total Basel III Capital adequacy ratio stood at 16.85 per cent, with a Common Equity Tier 1 ratio of 11.56 per cent at the end of the December quarter.
At this level of capital adequacy, he said the bank may not be required to raise capital in the fourth quarter to fund its business growth.
During the year, the bank has raised equity capital of Rs 1,000 crore and Tier II capital of Rs 774 crore.
The bank expects credit growth of 20-21 per cent, while deposits are expected to grow at 13-14 per cent in the fourth quarter.
The Current Account Savings Account (CASA) as a percentage of total deposits is around 50 per cent.
The bank plans to open about 100 branches in the current quarter. As of December 2023, the bank has 2,401 branch network.
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