Earnings Review
Rise in interest income pushes Bk of Maharashtra PAT up 23%
This story was originally published at 16:00 IST on 15 July 2025
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--Bank of Maharashtra Apr-Jun PAT INR 15.93 bln vs INR 12.93 bln year ago
--Bank of Maharashtra Apr-Jun total income INR 78.79 bln vs INR 67.69 bln
--Bk of Maharashtra gross NPAs 1.74% on Jun 30 vs 1.85% year ago
--Bank of Maharashtra net NPAs 0.18% on Jun 30 vs 0.20% year ago
--Bank of Maharashtra Basel-III capital adequacy ratio 20.06% as on Jun 30
--Bank of Maharashtra provision coverage ratio at 98.36% as on Jun 30
--Bk of Maharashtra Apr-Jun provision INR 8.67 bln vs INR 9.50 bln year ago
--Bank of Maharashtra Apr-Jun NPA provision INR 7.19 bln vs INR 5.86 bln
--Bk of Maharashtra Apr-Jun net interest income INR 32.92 bln, up 17.6% YoY
--Bank of Maharashtra net interest margin 3.95% as on Jun 30
--Bank of Maharashtra CASA ratio at 50.07% as on Jun 30 vs 49.86% year ago
--Bk of Maharashtra: Deposits INR 3.050 tln as on Jun 30, up 14.07% YoY
--Bk of Maharashtra gross advances INR 2.411 tln as on Jun 30, up 15.34% YoY
--Bank of Maharashtra Apr-Jun cost of deposits 4.59% vs 4.74% qtr ago
--Bank of Maharashtra Apr-Jun cost of funds 4.26% vs 4.30% qtr ago
--Bk of Maharashtra Q1 fresh slippage INR 7.27 bln vs INR 5.92 bln year ago
--Bk of Maharashtra Apr-Jun recovery, upgrades INR 2.42 bln vs INR 2.13 bln
By Priyasmita Dutta
NEW DELHI - Bank of Maharashtra yet again posted a robust rise in quarterly profit, supported by a rise in interest income. The public sector bank's net profit for the June quarter rose over 23% on year to INR 15.93 billion, with its interest income rising 20% on year to INR 70.54 billion. Sequentially, the net profit was up 6.7%.
Total income for the quarter increased over 16% on year to INR 78.79 billion. The bank announced its results during market hours Tuesday. At 1329 IST, shares of the bank were 1.9% higher at INR 57.15 on the National Stock Exchange.
The bank's net interest income grew nearly 18% on year to INR 32.92 billion while its non-interest income declined 8% to INR 8.25 billion. Notably, within the non-interest income segment, treasury income surged fourfold to INR 1.93 billion. However, the Pune-based lender's net interest margin slipped to 3.95% end of June, down from 4.01% at the end of March and 3.97% year ago.
The bank's asset quality improved on year. Gross non-performing asset ratio improved to 1.74% as of Jun. 30, compared with 1.85% a year earlier, though it remained flat sequentially. A similar trend was seen in the net non-performing asset ratio, which declined to 0.18% from 0.20% a year ago and was also flat sequentially.
Provisions for the quarter fell 9% on year to INR 8.67 billion, with a sharper 12% decline on a sequential basis. However, provisions for bad loans rose 23% on year to INR 7.19 billion and were also up 12% sequentially. The provision coverage ratio stood at 98.36% as of Jun. 30, higher than 98.26% end of March but flat from year ago. Fresh slippages during the quarter came in at INR 7.27 billion, up from INR 5.92 billion a year ago. Recoveries and upgrades during Apr-Jun were INR 2.42 billion, higher than INR 2.13 billion a year ago but lower than INR 3.66 billion a quarter ago.
The bank's business growth remained strong, with total advances rising over 15% on year to INR 2.41 trillion. Within this, retail loans grew 35%, agricultural loans rose 2.9%, and MSME loans increased 5.7%. Total deposits expanded by more than 14% on year to INR 3.05 trillion. Bank of Maharashtra's credit-deposit ratio was 79.04% as of June end, higher than 78.09% end of March and 78.18% end of June last year. The current account savings account ratio fell to 50.07% end of June, from 53.28% end of March, but higher than 49.86% end of June 2024.
The cost of deposits during the June quarter was 4.59%, lower than 4.74% end of March and 4.48% end of June last year. Cost of funds was 4.26% lower than 4.30% end of March, but higher than a year ago's figure of 4.09%.
Total expenditure, excluding provisions, rose 19% on year to INR 53.09 billion in Apr-Jun, with operating expenses, including employee costs, rising nearly 11% on year to INR 15.47 billion. It is to be mentioned that the bank's provisions for taxes more than doubled to INR 1.10 billion during Apr-Jun, which ate into the profit. The Basel-III capital adequacy ratio of the bank was 20.06% at the end of the June quarter, slightly lower than the 20.53% end of March, but higher than 17.0% end of June last year. End
Edited by Subhojit Sarkar
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