[ad_1]
Public sector lender Bank of Maharashtra on Monday reported a 138.46% year-on-year jump in net profit to Rs 775 crore for the third quarter, on account of an increase in interest income, robust recoveries and containing the cost of funds as well as deposits.
The bank reported a 30% increase in net interest income to Rs 1,980 crore, which aided margin growth. Net interest margin (NIM) expanded by 49 bps to 3.60%. AS Rajeev, MD and CEO, said the lender would maintain the NIM at these levels.
At 0.47%, the bank also reported lower NPAs, down from 1.24% in the year-ago period. Gross non-performing assets in the December quarter declined to 2.94% from 4.73% in the previous year.
The bank made provisions of Rs 539 crore during the quarter, 8.1% lower compared to the previous year. The provision coverage ratio improved to 97.18%, compared with 93.77% a year ago.
Also read: Focus on GST simplification and ease of doing business
The bank’s loan growth was at 21.67%, with gross advances increasing to Rs 1.56 trillion, led by a 23.12% growth in retail, 8.6% in agriculture and 21.63% in MSME segments. RAM loans accounted for 58% of advances.
The share of CASA deposits dropped by 2% because of a shift to term deposits, but it remained above 50%, the MD said. The bank’s total business grew 15.77% to Rs 3.65 trillion and the target is to cross the Rs 5-trillion mark in two years, Rajeev said.
Also read: Strong demand in India quite supportive for future growth of denim industry
BoM plans to dilute 5% equity through the QIP route initially, and explore other routes later, Rajeev said. The bank would raise between Rs 500 crore and Rs 1,000 crore during Q4FY23. It did not need the capital but the target was to bring down government holding in the bank to 85%, he said.
The bank had changed its strategy to first raising assets and then raising liability, Rajeev said.
[ad_2]
Source link
