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Bank of Maharashtra Posts Highest Growth In Deposit Mobilisation

In Business
February 07, 2024

Bank of Maharashtra has recorded the highest growth rate in terms of deposit mobilisation among public sector lenders at a time when most lenders are facing difficulty in achieving double-digit growth. Out of 12 public sector banks, only Bank of Maharashtra and State Bank of India (could log a double-digit growth in deposits in the third quarter ended December 2023.

Bank of Maharashtra has reported a 17.89% growth in deposits followed by SBI at 12.84% during the quarter, according to published quarterly numbers of the public sector banks. However, SBI’s total deposits were about 18.5 times higher at Rs 45,67,927 crore, as compared to Rs 2,45,734 crore of BoM in absolute terms.

Central Bank of India was the third by clocking a 9.53% growth in deposits while Punjab National Bank recorded a 9.10% increase.

In terms of low-cost CASA deposits, Bank of Maharashtra continued to top the chart with 50.19% followed by Central Bank of India with 48.98%. Higher level of Current Account and Savings Accounts helps banks to keep their cost of funds low.

On the asset quality side, Bank of Maharashtra and SBI reported the lowest gross Non-Performing Assets with 2.04% and 2.42% respectively as of Dec. 31, 2023. In terms of Net NPAs, BoM and Indian Bank reported the lowest net NPA with 0.22% and 0.53% respectively. On Capital Adequacy Ratio, Bank of Maharashtra with 16.85% is the highest amongst PSBs followed by IOB at 16.80% and Punjab & Sind Bank at 16.13% at the end of the third quarter of the current fiscal.

During nine months of FY24, all 12 PSBs cumulatively reported a net profit of Rs 98,355 crore as against a total profit of Rs 104,649 crore for the full year of FY’23. PNB had the highest quarterly net profit growth with 253% (Rs 2,223 crore) followed by Bank of India with 62% growth (Rs 1,870 crore) and Union Bank of India with 60% (Rs 3,590 crore).

However, three lenders — SBI, UCO Bank and Punjab & Sind Bank — reported a fall in net profit by 35.49%, 22.97% and 69.44% respectively.