Bank of Maharashtra Q4 profit jumps 45% to Rs 1,218 crore

New Delhi: State-owned Bank of Maharashtra (BoM) on Friday reported a 45 per cent jump in its net profit to Rs 1,218 crore for the March quarter, helped by a decline in bad loans and a rise in interest income.

The Pune-based lender had earned a net profit of Rs 840 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 6,488 crore as against Rs 5,317 crore a year ago, BoM said in a regulatory filing.

Interest income grew to Rs 5,467 crore during the period under review, from Rs 4,495 crore in the corresponding quarter a year ago.

The bank's board has recommended a dividend of Rs 1.40 per share or 14 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2024.

On the asset quality side, the bank's Gross Non-Performing Assets (NPAs) were reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.47 per cent by the end of March 2023.

Net NPAs also came down to 0.20 per cent of the advances from 0.25 per cent at the end of 2024.

The fall in bad loans ratio helped cut the provisions towards NPAs for Q4FY24 to Rs 457 crore as compared with Rs 545 crore a year ago.

The board also approved raising of capital up to Rs 7,500 crore through a Follow-on Public Offer (FPO) or rights issue, Qualified Institutional Placement (QIP) issue, or any other mode or through issue of BASEL III Compliant Tier I and Tier II Bonds or such other securities as may be permitted under applicable laws etc, it said.

Provision Coverage Ratio stood to 98.34 per cent as on March 30, 2024.

However, the capital adequacy ratio of the bank declined to 17.38 per cent from 18.07 per cent at the end of FY23.