Public sector lender Bank of Maharashtra reported a year-on-year increase of 23.09% in net profit, reaching Rs 1,633 crore for the September quarter. This growth was driven by a 15.71% rise in net interest income to Rs 3,248 crore. Improvements in asset quality and a strong double-digit growth in retail lending, which increased by 37.45%, also contributed to the growth.
Strong quarterly performance
Operating income rose by 16.91%, reaching Rs 2,574 crore for the quarter. The cost-to-income ratio improved to 37.10%, compared to 38.81% in Q2 FY25. Return on assets increased from 1.74% to 1.82%. As of September 30, the net interest margin (NIM) stood at 3.85%. The bank’s gross non-performing assets decreased by 12 basis points to 1.72%, while the net NPA remained at 0.18%, a decline of 2 basis points from the previous year.
CEO highlights robust growth
Nidhu Saxena, the managing director and CEO of Bank of Maharashtra, said the quarter was particularly strong for the bank, indicating that it had outperformed the industry and exceeded its own guidance. The NIM of 3.85% was within the expected range of 3.75%. Despite anticipating an 18-19 basis points compression due to rate cuts—applied to 40% of their portfolio—this did not occur. Saxena expressed confidence that if no further rate cuts happen in December, the bank could maintain the NIM at its current level. The bank has focused on low-cost deposits, with CASA deposits growing by 13.03%.
In addition to strong performance in the Retail, Agriculture, and MSME segments, there has also been growth in corporate credit over the past two to three quarters, according to Saxena.
The bank’s board has approved a capital raising plan of Rs 7,500 crore.