Higher total income lifts Bank of Maharashtra's PAT 47% in Apr-Jun
This story was originally published at 18:39 IST on 15 July 2024
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MUMBAI – Bank of Maharashtra's net profit for the June quarter jumped 46.6% on year to 12.9 bln rupees on the back of a rise in total income. Sequentially, the bottomline rose only 6%.
The state-owned bank's total income rose almost 25% on an annualised basis to 67.69 bln rupees. Sequentially, however, this was up only 4%.
Interest earned by the bank rose to 58.75 bln rupees from 47.89 bln rupees in the same quarter last year. Of this, interest on advances and bills was up 21.4% on an annualised basis at 44.58 bln rupees. Income on investments rose 20% on year to 13.01 bln rupees.
In the June quarter, the bank's expenses grew at a similar pace as total income. Total expenses increased 26% on year to 44.74 bln rupees. Of this, interest expended rose to 30.76 bln rupees from 24.49 bln rupees a year ago.
Post the earnings, shares of the state-owned bank today closed 5.6% higher at 68.75 rupees on the National Stock Exchange.
On the asset quality front, the bank's gross non-performing assets ratio was at 1.85% as of Jun 30, little changed from 1.88% a quarter ago. It, however, improved from 2.28% a year ago. The lender's net non-performing assets ratio was 0.20%, unchanged from a quarter ago, but lower than 0.24% a year ago.
The bank's provisions rose 22.5% on an annualised basis to 9.50 bln rupees. Out of these, provision for non-performing assets rose to 5.86 bln rupees from 5.39 bln rupees in the corresponding quarter last year. As of Jun 30, the lender's provision coverage ratio was 98.36%, little changed from a year ago.
The bank's gross advances rose 19% in the June quarter on a yearly basis. As of Jun 30, the bank's gross advances were at 2.09 trln rupees, higher than 2.04 trln rupees in the previous quarter.
The bank's retail, agricultural and micro, small, and medium businesses improved to 61.05% of gross advances. Retail advances grew 18.3% on year to 531.61 bln rupees, while advances to MSMEs rose 26.15% to 425.61 bln rupees.
For the Pune-based bank, deposits increased 9.4% on year to 2.67 trln rupees. The low-cost current account savings account ratio was 49.86% as of Jun 30. The bank's credit-to-deposit ratio was 78.17%, against 71.89% a year ago. At a post-earnings conference call, the bank's management said it was comfortable with the current credit-deposit ratio.
In the reporting quarter, the bank's net interest income was 27.99 bln rupees, as against 23.40 bln rupees a year ago. Meanwhile, the net interest margin was at 3.97% as of Jun 30, unchanged on a sequential basis, but up from 3.86% a year ago. Asked if there was still scope for the interest rate on corporate loans to rise, bank officials said as the Reserve Bank of India has kept the repo rate unchanged, the interest rate on corporate books may also remain the same.
On the non-interest income front, officials said that new investment norms that came into effect on Apr 1 have weighed on the treasury gains. Treasury income for the lender fell 23% on year to 480 mln rupees. It was at 1.49 bln rupees a quarter ago.
Meanwhile, officials also said that the bank is looking to raise funds through infrastructure bonds in the financial year ending March. They said the bank would likely raise 100 bln rupees through the bonds in multiple tranches. The proposal is yet to be approved by the board of the state-owned bank. The bank's Basel-III capital adequacy ratio was 17.04% as of Jun 30, down 34 basis points from the previous quarter. End
Reported by Siddhi Chauhan and Nishat Anjum
Edited by Avishek Dutta and Tanima Banerjee
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