State-owned Bank of Maharashtra (BoM) on Monday reported more than two-fold jump in its profit at Rs 775 crore in the quarter ended December 2022 due to increase in net interest income and improved asset quality.
The Pune-based bank had posted a net profit of Rs 325 crore in the same quarter a year ago.
Speaking about quarterly number, BoM managing director AS Rajeev said the net profit surged by a 138.76 per cent and operating profit has shown a growth of 35.94 per cent to Rs 1,580 crore as against Rs 1,162 crore in the same quarter a year ago.
He said the bank aims to protect the profit growth in the current quarter and also maintain the Net Interest Margin (NIM) at the current level of 3.6 per cent.
Net Interest Income (NII) of the bank grew by 29.65 per cent on a year-on-year basis to Rs 1,980 crore as against Rs 1,527 crore in the third quarter of the previous fiscal.
The bank’s total income increased to Rs 4,770 crore in the latest December quarter from Rs 3,893 crore in the year-ago period.
On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 2.94 per cent, as compared to 4.73 per cent at the end of third quarter of previous fiscal.
At the same time, net NPAs eased below 1 per cent to 0.47 per cent, as against 1.24 per cent in the same period a year ago.
As a result, provisions for bad loans declined to Rs 539 crore as against Rs 587 crore during the same quarter a year ago.
He also said that the bank would maintain gross NPA below 3 per cent while net NPA below 0.5 per cent.
The capital adequacy ratio rose to 17.53 per cent in the December quarter as against 14.85 per cent.
During the quarter, he said, the bank has raised Tier I Capital of Rs 1,590 crore (out of which Rs 880 crore during the month of December 2022) and Tier II capital of Rs 348 crore.
Credit-Deposit (CD) Ratio improved to 75.30 per cent, he said, adding, it can further go up to 78 per cent.
On the outlook for recoveries, Rajeev said, the bank expects total recoveries of Rs 1,000 crore during the current financial year.
The bank expects Rs 153 crore from the resolution of Jaypee Infratech, he said, adding, the bank has transferred 13 accounts to National Asset Reconstruction Company (NARCL).
Besides, the bank expects resolution from debt-ridden Srei which is undergoing the insolvency process.
With regard to network expansion, he said, it will increase to 2,200 branches by the end of the current financial year.
Currently, the bank has 2,128 branches spread across the country.