Bank of Maharashtra, a state-run lender, has reported strong financial results for the first quarter of FY24, showcasing remarkable growth and improvement in its performance. The bank’s net profit soared by an impressive 95.2% year-on-year (YoY), reaching ₹882.08 crore compared to ₹451.90 crore in the same period last fiscal.
A significant contributor to the bank’s success was its net Interest Income (NII), which increased by 38.8% YoY, reaching ₹2,339.7 crore from ₹1,685.7 crore. The NII represents the difference between the interest earned and the interest expended by the bank, indicating the core profitability of its lending operations.
Bank of Maharashtra’s pre-provision operating profit (PPOP) also witnessed a substantial YoY growth of 55%, surging to ₹1,863.22 crore from ₹1,201.76 crore. This metric demonstrates the bank’s operational efficiency before accounting for provisions and contingencies.
Furthermore, the bank’s other income recorded an impressive surge of 98.5% YoY, reaching ₹628.84 crore from ₹316.85 crore, indicating diversified revenue streams beyond its core banking activities.
Notably, Bank of Maharashtra made provisions and contingencies amounting to ₹776.11 crore during Q1FY24, compared to ₹548.41 crore in the corresponding period last year and ₹944.75 crore in the previous quarter.
One of the most encouraging aspects of the bank’s performance was the improvement in its asset quality. The gross non-performing assets (NPAs) at the end of June 2023 quarter declined to 2.28% from 2.47% in the previous quarter. Similarly, the net NPA ratio eased to 0.24% from 0.25% quarter-on-quarter (QoQ).
Bank of Maharashtra’s Capital Adequacy Ratio, a measure of its financial strength and stability, stood at a healthy 18.07% in Q1FY24, compared to 16.15% in the same period last year and 18.14% in the previous quarter. Moreover, the Provision Coverage Ratio as of June 30, 2023, was reported at an impressive 98.37%, indicating a strong buffer against potential loan losses.
Investors have responded positively to the bank’s robust performance, with its share price gaining 9% this year and a remarkable 97% surge in the last one-year period.
Overall, Bank of Maharashtra’s Q1 results signify a promising start to the fiscal year, with substantial profit growth, improved asset quality, and strengthened financial ratios, instilling confidence in its shareholders and stakeholders alike.