Bank of Maharashtra, the state-run lender, has kicked off the fiscal year on a high note, delivering stellar financial results for the first quarter of FY24. The bank reported a standalone net profit of ₹882.08 crore, witnessing an impressive growth of 95.2% compared to ₹451.90 crore in the corresponding quarter of the previous fiscal.
During Q1FY24, Bank of Maharashtra’s net interest income (NII), the difference between interest earned and interest expended, surged by 38.8% to ₹2,339.7 crore from ₹1,685.7 crore in the previous year. The bank’s pre-provision operating profit (PPOP) also demonstrated a remarkable surge, jumping by 55% to ₹1,863.22 crore from ₹1,201.76 crore, YoY.
The bank’s other income witnessed substantial growth, rising by 98.5% to ₹628.84 crore from ₹316.85 crore, YoY. Alongside these impressive financial figures, Bank of Maharashtra showcased significant improvement in its asset quality during the quarter under review.
Provisions and contingencies for Q1FY24 amounted to ₹776.11 crore, as against ₹548.41 crore in the corresponding period of the previous year, and ₹944.75 crore in the previous quarter. Sequentially, the bank’s gross non-performing assets (NPA) declined by 19 basis points to 2.28% from 2.47%, while net NPA eased to 0.24% from 0.25%.
On an absolute basis, gross NPA decreased by 7.55% to ₹4,006.73 crore from ₹4,334 crore, QoQ, while net NPA declined by 4.89% to ₹413.87 crore from ₹435.18 crore, sequentially. Furthermore, Bank of Maharashtra’s Capital Adequacy Ratio for Q1FY24 stood at 18.07% compared to 16.15%, YoY, and 18.14%, QoQ. The Provision Coverage Ratio as of June 30, 2023, was an impressive 98.37%.
The bank’s share price has witnessed positive traction, gaining 9% in the current year and a remarkable 97% over the past twelve months, reflecting investors’ confidence in the institution’s robust performance.
As of 1:00 PM, the shares of Bank of Maharashtra were trading 5.30% higher at ₹33.17 apiece on the Bombay Stock Exchange (BSE). With such strong financial results and improved asset quality, Bank of Maharashtra sets a promising trajectory for the upcoming quarters, instilling optimism in investors and stakeholders alike.
