Bank of Maharashtra (BoM) on Monday reported a 135% year-on-year (y-o-y) growth in its net profit to Rs 840 crore for the January-March quarter. It was led by a growth in advances across all the segments, a 36% rise in net interest income to Rs 2,187 crore and an increase in the net interest margin to 3.78%.
The board has approved fundraising of Rs 7,500 core via debt and equity. BoM plans to raise only Rs 2,000 crore in FY24 to fund growth plans, with Rs 1,000-crore equity to be raised in Q1FY24, As Rajeev, managing director and CEO, said. The remaining would be raised over the next one to one- and-a-half years.
In his guidance for FY24, Rajeev said the bank would look to maintain margins in the 3.5% to 4% range. He expected the bank to cross the Rs 5-trillion mark in total business in FY24, making it a large mid-sized bank.
The credit growth for the current fiscal is expected at 18-22% to reach Rs 2.2 trillion. Deposits are seen rising 15-16% to Rs 2.8 trillion. The board has approved 200 new branches for FY24 that would bring in additional growth.
During the January-March quarter, the total business grew 21% to Rs 4.09 trillion, with gross advances rising 30% to Rs 1.75 trillion and deposits growing 16% to Rs 2.34 trillion. The retail segment loans grew by 23%, MSME by 27% and agriculture loan growth was at 23%.