BoM Q3 Results: PAT jumps 140% YoY to Rs 775 crore on fall in provisions

Bank of Maharashtra reported a 140% year-on-year jump in net profit for the December quarter at Rs 775 crore, backed by a healthy rise in total income and a sharp fall in provisions.

Net profit was Rs 325 crore in the year-ago quarter.

The state-owned lender improved its net interest margin for the quarter to 3.6% from 3.1% in the corresponding quarter last year, thereby maintaining NIM above 3% for the eighth consecutive quarter.

Total income for the bank rose 23% at Rs 4770 crore against Rs 3893 crore in the year-ago quarter while net interest income rose nearly 30% at Rs 1,980 crore against Rs 1,527 crore. Provisions other than taxes fell 30% at Rs 582 crore against Rs 836 crore.

Operating profit rose 36% at Rs 1,580 crore. It was Rs 1,162 crore in the year-ago quarter.

The bank reduced its gross non-performing assets ratio to 2.94% at the end of December 2022 from 4.73% a year back. Net NPA stood at 0.47% against 1.24%.

"We aim to keep gross NPA below 3%," managing director AS Rajeev said.

Bank of Maharashtra shares jumped 4.26% to close at Rs 33.05 on the BSE on Monday.

The lender achieved a 21.7% year-on-year rise in advances to Rs 1.57 lakh crore while deposits grew 11.7% to Rs 2.08 lakh crore.

Rajeev said that the bank offloaded investments in state-government securities to grow advances, helping the credit-deposit ratio to rise to 75.3% from 69% a year back.

The bank is planning a share sale worth Rs 500-1,000 crore through quantitative institutional placement, possibly this quarter, to reduce government holding to 85% from above 90% at present. According to stock market regulation, a promoter should not hold more than 75%.

Rajeev said that the bank is taking "piecemeal" steps to adhere to the guideline while its capital adequacy is well above the regulatory prescription.