Bank of Maharashtra PAT Soars 111% in Q3

MUMBAI:
Bank of Maharashtra’s net profit soared 111 per cent year-on-year (y-o-y) to ₹325 crore in the Q3 against ₹154 crore in the year-ago period on the back of healthy growth in net interest income and lower tax expenses.

The Pune-headquartered public sector bank’s net interest income was up 17 per cent y-o-y to ₹1,527 crore (₹1,306 crore in the year-ago quarter).
Tax expenses were sharply down at ₹86 crore (₹250 crore).

Other income, comprising fee-based income, treasury income and miscellaneous income, was up 6 per cent y-o-y at ₹611 crore.

The Gross NPA position improved to 4.73 per cent of gross advances in the reporting quarter against 5.56 per cent in the preceding quarter. The Net NPA position also improved to 1.24 per cent of net advances against 1.73 per cent.

As Rajeev, MD & CEO, BoM, said: “Generally, we used to post operating profit of ₹300-350 crore per quarter earlier. Now, it is almost ₹1,200 crore. Our aim is to reach ₹1,500 crore per quarter in FY23.”

BoM is expecting 17-20 per cent growth in advances and 10-12 per cent growth in deposits in FY22.

Loan loss provisions were up 52 per cent y-o-y to ₹587 crore (₹386 crore).

A senior official underscored that the bank made more provisions than what is require by the regulator in order to bring down NNPAs and increase provision coverage ratio to 93.77 per cent from 89.55 per cent a year ago.

Gross advances grew by 23 per cent y-o-y to ₹1,29,006 crore as of December-end 2021. This came mainly on the back of 31 per cent y-o-y growth in corporate and other advances, 24 per cent y-o-y growth in MSME advances and 19 per cent y-o-y growth in retail advances.

Deposits increased by 15 per cent y-o-y to ₹1,86,614 crore The proportion of low cost current account, savings account deposits increased to 55.05 per cent from 50.91 per cent a year ago.