Bank of Maharashtra Reports 41% Profit Surge to ₹2,310 Crore
The Bank of Maharashtra has announced a significant 41% increase in net profit for Q2, reaching ₹2,310 crore, fueled by robust core income.
Net profit rose to ₹2,310 crore, a 41% increase year-on-year.
Interest income increased to ₹8,607 crore, up from ₹7,128 crore.
Gross NPAs improved to 1.25%, marking a positive trend in asset quality.
The Bank of Maharashtra has reported a remarkable 41% rise in its net profit for the second quarter of the fiscal year, reaching ₹2,310 crore. This growth is attributed to an increase in core income and enhanced asset quality, as announced by the bank's management during a conference call on Monday.
During this quarter, the Pune-based bank generated an interest income of ₹8,607 crore, a significant increase from ₹7,128 crore in the same quarter last year. The total income also saw an uptick, climbing to ₹9,736 crore from ₹7,974 crore a year prior. Notably, the net interest income surged by 22%, amounting to ₹3,954 crore, reflecting the bank's strong performance in its core banking operations.
Nidhu Saxena, the managing director, highlighted that the domestic net interest margin (NIM) improved to 3.98%, while the global NIM stood at 3.86% for the quarter. The bank successfully mobilized $820 million through the RBI's concessional swap window and an additional $500 million via its medium-term note program, contributing to a total of $1.65 billion raised to support its credit growth strategy. Despite these gains, the bank recorded a treasury loss of ₹32 crore this quarter, contrasting with a profit of ₹120 crore during the same period last year, primarily due to rising interest rates.
The asset quality of the bank has also shown marked improvement, with gross non-performing assets (NPAs) decreasing to 1.25% of gross loans, down from 1.72% a year ago. Net NPAs have similarly declined to 0.12%, the lowest in the industry, compared to 0.18% previously. Furthermore, the provision coverage ratio increased to 98.53% from 98.34%, and the capital adequacy ratio rose to 18.51 from 18.13, indicating a solid financial foundation.
The total business of the bank grew by 25%, reaching ₹7,05,766 crore. However, the proportion of low-cost CASA (Current Account Savings Account) deposits fell to 46.47% from 50.35%. Looking ahead, the bank is expected to continue its focus on maintaining asset quality while leveraging its capital for further growth in credit and profitability.
