Earnings Review
Surge in NII lifts Bank of Maharashtra PAT 2nd qtr in a row
This story was originally published at 17:34 IST on 25 April 2025
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--Bank of Maharashtra Jan-Mar net profit INR 14.93 bln vs INR 12.18 bln yr ago
--Bank of Maharashtra Jan-Mar total income INR 77.1 bln vs INR 64.9 bln yr ago
--Bank of Maharashtra gross NPA ratio 1.74% as of Mar 31 vs 1.80% qtr ago
--Bank of Maharashtra net NPA ratio 0.18% as of Mar 31 vs 0.20% qtr ago
--Bank of Maharashtra to pay INR 1.5 per share dividend
--Bank of Maharashtra Basel III capital adequacy ratio 20.53% as of Mar 31
--Bank of Maharashtra Jan-Mar provisions INR 9.83 bln vs INR 9.42 bln yr ago
--Bank of Maharashtra Jan-Mar NPA provision INR 6.40 bln vs INR 4.57 bln
--Bank of Maharashtra provision coverage ratio at 98.26% as on Mar 31
--Bank of Maharashtra FY25 net profit INR 55.20 bln vs INR 40.55 bln yr ago
--Bank of Maharashtra FY25 total income INR 284.0 bln vs INR 234.9 bln yr ago
--Bank of Maharashtra: Held COVID-19 provision of INR 12 bln as on Mar 31
--Bank of Maharashtra: Govt shareholding in bank at 79.60% as on Mar 31
--Bank of Maharashtra board OKs raising up to INR 75 bln via equity, debt
--Bank of Maharashtra OKs raising up to INR 100 bln via infra bonds in FY26
By Sachi Pandey
MUMBAI – Bank of Maharashtra saw a strong rise in quarterly profit, supported by higher earnings from core operations. The public sector bank's net profit for the quarter ended March rose 22.6% on year to INR 14.93 billion, on rise in its net interest income. Sequentially, the net profit was up 6.2%.
Total income for the quarter increased 18.9% on year to INR 77.11 billion, driven by a jump of over 23% in interest earned to INR 67.31 billion from INR 54.67 billion a year ago. Other income fell by 4% year to INR 9.81 billion, though it rose from INR 7.88 billion in the previous quarter.
The bank's asset quality also improved year-on-year. Gross non-performing asset ratio of the lender dropped to 1.74% as of Mar. 31 from 1.88% a year earlier and 1.80% a quarter ago. The net non-performing asset ratio eased to 0.18%, compared with 0.20% a year and a quarter ago.
Provisions for the quarter rose 4.4% to INR 9.83 billion from INR 9.42 billion a year ago, but were up 17% from the previous quarter. Provisions for bad loans rose 40% on year to INR 6.40 billion. The provision coverage ratio was 98.26% as on Mar. 31. In the notes to the accounts, the bank said it continues to hold INR 12.00 billion as on Mar. 31 in COVID-related contingency provisions.
Business growth of the lender remained strong, with total business up 15.3% on year at INR 5.47 trillion. Of this, retail, agriculture, and micro, small, medium enterprises, segments, widely known as RAM segment, rose 19.68% on year. Total deposits of the lender increased 13.44% on year to INR 3.07 trillion, while gross advances grew 17.76% on year to INR 2.40 trillion as on Mar. 31. Within advances, retail loans rose 25.38% and MSME loans rose 14.84%.
Total expenditure, excluding provisions, rose 21% on year to INR 51.92 billion in Jan-Mar, with operating expenses, including employee costs, rising 13% on year to INR 15.77 billion. For the year ended Mar. 31, the bank recognised INR 3.49 billion, net of taxes, under available for sale category which is credited to its reserve as per Reserve Bank of India's rules. The bank's net profit for FY25 rose 36% to INR 55.20 billion and total income increased 21% to INR 284.00 billion.
The bank reported 291 fraud cases in FY25, including 110 digital payment frauds that resulted in no losses, the lender said. "Further, in respect of remaining fraud cases amounting to INR 8.91 billion, bank is holding 100% provisions to the extent of loss that is INR 7.02 billion," the bank said.
In October, the bank had raised equity share capital of INR 35.00 billion through qualified institutional placements and allotted 610 million equity shares at a premium of INR 47.36 per share. "Accordingly, the shareholding of Government of India in the bank has been reduced to 79.60% as on Mar. 31," the bank said.
The board has proposed a dividend of INR 1.50 per share for FY25, subject to shareholder approval. The board also approved raising up to INR 75.00 billion through equity or debt instruments and up to INR 100 billion through infrastructure bonds in FY26. The Basel-III capital adequacy ratio of the bank was 20.53% at the end of the March quarter.
The bank announced its results during market hours on Friday. Shares of the bank closed 1.1% lower at INR 50.01 on the National Stock Exchange. End
Edited by Ashish Shirke
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