Bank of Maharashtra Q1 profit rises 95% to Rs 882 cr

New Delhi: State-owned Bank of Maharashtra (BoM) on Wednesday reported a 95 per cent jump in net profit to Rs 882 crore for the June quarter, helped by a decline in bad loans and improvement in interest income.

The Pune-based lender had posted a net profit of Rs 452 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 5,417 crore from Rs 3,774 crore in the same period a year ago, BoM said in a regulatory filing.

Interest earned by the bank grew to Rs 4,789 crore over Rs 3,457 crore in June 2022. Net interest income of the bank increased by 38.80 per cent to Rs 2,340 crore.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.28 per cent of gross advances at the end of the June quarter from 3.74 per cent a year ago.

Similarly, net NPAs or bad loans, declined to 0.24 per cent as against 0.88 per cent in the year-ago period.

Talking about the quarterly numbers with media, BoM managing director A S Rajeev said, the bank expects credit growth of 20-22 per cent while deposits to rise by 14-15 per cent in the current financial year.

To meet the credit growth, he said, the bank plans to raise Rs 2,000 crore from Tier I and Tier II bonds.

As far as recovery is concerned, the bank expects Rs 3,000 crore during the current year.

Provision Coverage Ratio improved to 98.37 per cent while Net Interest Margin (NIM) improved to 3.86 per cent as on June 30, 2023.

Capital adequacy ratio of the bank increased to 18.07 per cent from 16.15 per cent in the same quarter of FY'23.