On Monday, the Bank of Maharashtra reported that its net profit surged by 103 per cent year on year (YoY) to Rs 535 crore in the quarter that ended September (Q2FY23) as net interest margin (NIM) improved. The Pune-based public sector bank posted a net profit of Rs 264 crore in Q2FY22.

Reportedly, the bank’s net interest income (NII) was up 25.84 per cent YoY in Q2FY23 to Rs 1,887 crore. Its NIM improved to 3.55 per cent in Q2FY23 from 3.27 per cent in Q2FY22. The margins are going to remain steady at around 3.5 per cent for FY23. Also, the bank’s non-interest income declined 40 per cent YoY to Rs 502 crore during the quarter under review.

BoM’s asset quality profile improved with gross non-performing assets (GNPAs) at 3.4 per cent till September 2022, compared with 5.56 per cent a year ago. Net NPAs declined to 0.68 per cent from 1.73 per cent.

Bank of Maharashtra also said that the provision coverage ratio increased to 96.06 per cent for the second quarter from 92.38 per cent a year ago. Its loan book grew 28.65 per cent YoY, at a much higher rate than the banking system’s pace of loan book expansion (16.4 cent YoY) in September 2022. Outstanding advances remained at Rs 1.48 trillion as of September 2022. The bank expects to expand its loan book by about 25 per cent in FY23. The growth is sustainable with sound asset quality and prudent borrower selection.

On Monday, the bank’s stock was trading 4.74 per cent higher at Rs 18.8 per share on BSE.