Bank of Maharashtra’s net profit jumps 110.70% to Rs 325 crore

A S Rajeev, managing director and CEO, BoM attributed this growth in profit to higher net interest income, growth in all business segments including retail, agriculture and MSME loans and an improvement in the asset quality.

Bank of Maharashtra, Bank of Maharashtra results, Bank of Maharashtra Q3 results

Bank of Maharashtra on Thursday reported a 110.70% y-o-y rise in its net profit at Rs 325 crore during the October-December quarter.

A S Rajeev, managing director and CEO, BoM attributed this growth in profit to higher net interest income, growth in all business segments including retail, agriculture and MSME loans and an improvement in the asset quality.

BoM’s net interest margin during Q3FY22 was at 3.11 per against 3.06% a year ago. Net interest income increased by 16.90% to Rs 1,527 crore.

Gross NPA declined to 4.83% as on December 31, 2020, compared to 7.69% on December 31, 2020. Net NPA fell to 1.24% from 2.59% in the comparable period last year. The bank’s provision coverage ratio has gone up to 93.77% from 89.55% in December 2020.

The December quarter operating profit rose by 28.12% to Rs 1,162 crore. The aim was to reach `1,500-crore quarterly profit next year, Rajeev said.

The bank is planning to raise funds for its expansion plans, Rajeev said. The bank would raise between Rs 500 and Rs 750 crore Tier I capital through the QIP route by February 15, 2022 , Rajeev said.

They would also look at raising another Rs 1,000 crore in the first quarter of FY23, he said. BoM had raised Rs 1,000 crore in October 2021 through a Tier II bond issue to Life Insurance Corporation. In July 2021, the bank has raised Rs 403 crore capital through QIP at Rs 23.70 per share.

For the first time, BoM’s total business had crossed Rs 3 lakh crore mark to reach Rs 3,15,620 crore making its entry into the mid-size bank segment, Rajeev said.

Deposits grew by 15.21% y-o-y to Rs 1,86,614 crore while advances during the quarter, while advances grew by 22.98% y-o-y to Rs 1,29,006 crore. The bank’s CRAR stands at 14.85% and does not include the profits for this year and the Rs 1,073-crore Covid provisions.

The bank was also making Rs 250-crore profit from sale of priority sector lending certificates (PSLC certificates).

Earlier the bank was investing in Rural Infrastructure Development Fund but instead of that the bank was investing in PSLC which was adding to profitability.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.