Bank of Maharashtra reports 45% surge in quarterly net profit

Bank of Maharashtra Q4: Bank of Maharashtra (BoM) announced 45 per cent increase in its net profit to Rs 1,218 crore for the March quarter, attributing the growth to a reduction in bad loans and an uptick in interest income. The Pune-based lender had recorded a net profit of Rs 840 crore in the corresponding period last year.

During the quarter, the bank's total income rose to Rs 6,488 crore compared to Rs 5,317 crore a year ago, as stated in a regulatory filing. Interest income also witnessed growth, reaching Rs 5,467 crore, up from Rs 4,495 crore in the same quarter last year.

BoM's board recommended a dividend of Rs 1.40 per share, amounting to 14 per cent of the face value of Rs 10, from the net profits for the fiscal year ended March 31, 2024.

On the asset quality front, the bank reported a decrease in Gross Non-Performing Assets (NPAs) to 1.88 per cent of gross advances as of March 31, 2024, down from 2.47 per cent in March 2023. Net NPAs also declined to 0.20 per cent of advances compared to 0.25 per cent in the previous year.

The improvement in the bad loans ratio led to a reduction in provisions towards NPAs for Q4FY24, totalling Rs 457 crore compared to Rs 545 crore in the previous year.

Additionally, the board approved raising capital up to Rs 7,500 crore through various modes such as a Follow-on Public Offer (FPO), rights issue, Qualified Institutional Placement (QIP), or issuance of BASEL III Compliant Tier I and Tier II Bonds.

The bank's Provision Coverage Ratio stood at 98.34 per cent as of March 30, 2024. However, the capital adequacy ratio declined to 17.38 per cent from 18.07 per cent at the end of FY23.

Bank of Maharashtra shares ended 3.65 per cent higher at Rs 67.62 after earnings announcement.