Bank of Maharashtra Q4 PAT UP 45%; higher NII, other income boosts profit

Public sector lender Bank of Maharashtra on Friday reported 45% year-on-year (y-o-y) increase in its net profit for the quarter ended March 31 at Rs 1,218 crore, driven by robust growth in core income.

In Q4FY24, the bank’s net interest income surged by 18% y-o-y to Rs 2,584 crore. Additionally, the net interest margin (NIM) expanded by 2 basis points quarter-on-quarter (q-o-q) to 3.97% in Q4, with expectations to remain within the 3.7%-3.9% range in FY25, according to MD & CEO Nidhu Saxena during the post-earnings conference.

Other income, encompassing fees from third-party services and treasury gains, among others, also saw a notable increase of 24% y-o-y to Rs 1,022 crore in Q4, contributing to the growth in bottom line. The bank’s board of directors has recommended a dividend of Rs 1.40 per equity share for FY24.

Also Read

Ghost malls pockmark India’s shopping streets

Startups jittery as DoT mulls closing first R&D finance scheme early

Adani Enterprises cuts FY25 capex by 13% to Rs 80,000 crore

Marico targets 50% rise in direct outlet reach by FY27

Furthermore, the bank witnessed a 16% y-o-y rise in overall advances, reaching Rs 2.03 trillion as of March 2024, with retail, agriculture, and MSME (RAM) loans constituting 61%, while the corporate sector comprised the rest. The bank is targetting 16%-20% growth in advances in the current financial year, Saxena said.

On the liabilities side, the bank’s total deposits increased by 16% y-o-y to Rs 2.70 trillion as of March 31. The low-cost current account and savings account (CASA) ratio also improved to 52.73% during Q4, up from 50.19% in the previous quarter. Saxena projected an expected rise of 12%-15% in overall deposits for FY25.

Bank of Maharashtra’s asset quality showed improvement in the reporting quarter, with gross and net non-performing asset ratios (GNPA, NNPA) declining to 1.88% and 0.20%, respectively, as of March 2024, compared to 2.04% and 0.22% in the previous quarter.

The bank’s board approved plans to raise up to Rs 7,500 crore through methods such as FPO and QIP for business expansion and to comply with market regulator Securities and Exchange Board of India (Sebi) norms, which mandate lowering promoter stake in companies to 75% by August. As of March 2024, the Centre held an 86% stake in Bank of Maharashtra.