Bank of Maharashtra (BoM) shares rose 5.84% to Rs 33.55 crore after the state-owned lender’s standalone net profit rose 138.74% to Rs 775.03 crore in the October-December quarter of fiscal 2023, while FY22 The reported net profit for the October-December quarter was Rs 324.63 crore.
Total income surged 22.51% to Rs 4,769.78 crore in the December quarter of FY23 from Rs 3,893.23 crore recorded in the October-December quarter of FY22.
The bank’s net profit rose by 44.85% in the October-December quarter of FY2023, with total revenue increasing by 10.48%. PSU Bank’s operating profit in the October-December quarter of FY23 rose 35.94% YoY to Rs 1,580 crore compared to Rs 1,162 crore in the October-December quarter of FY22. On a month-on-month basis, the bank’s operating profit increased by 8.1% month-on-month.
Net interest income (NII) in the October-December quarter of FY23 rose 29.65% to Rs 1,980 crore compared to Rs 1,527 crore in the October-December quarter of FY22. An increase of 4.91% month-on-month. Net interest margin (NIM) improved to 3.6%. The bank’s gross non-performing assets (NPAs) stood at Rs 4,612.12 crore October-December quarter of FY23 compared to Rs 5,038.87 crore as of September 30, 2022, and Rs 6,104.65 crore as on December 31, 2021.
The ratio of gross NPAs declined to 2.94% as on December 31, 2022, as against 3.4% as on September 30, 2022, and 4.73% as on December 31, 2021.
The ratio of net NPAs reduced to 0.47% on December 31, 2022, against 0.68% on September 30, 2022, and 1.24% on December 31, 2021.
The provision coverage ratio improved to 97.18% on December 31, 2022, compared to 96.06% on September 30, 2022, and 93.77% on December 31, 2021.
At the end of the December quarter of FY23, the bank holds a cumulative Covid-19 provision of Rs 1,200 crore.
The total Basel III capital adequacy ratio improved to 17.53% with a standard equity tier 1 ratio of 13.47% for the October-December quarter of FY23.
CASA deposits rose 6.52% YoY during the quarter to Rs 1,09,430 crore. CASA ratio declined to 52.50% on December 31, 2022, compared to 55.05% on December 31, 2021.
Return on Assets (ROA) increased to 1.30% for the October-December quarter of FY23 against 0.6% for Q3FY22 and 0.92% for Q2FY23. Return on Equity (ROE) also improved to 24.41% for Q3FY23 from 13.49% for the October-December quarter of FY22 and 18.32% for Q2FY23.
Bank of Maharashtra is a public sector bank in India. The Government of India held a 90.97% stake in the bank as of December 31, 2022.