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Owing strong financial performance this PSU Bank rallies nearly 6% on October 17
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Last Updated: 11th December 2022 - 12:24 am
Net Profit saw a 103% jump and came in at Rs 535 crore
Bank of Maharashtra announced that in Q2FY23 reporting a 15.92% growth in total business to Rs 344,065 crore.
The bank's Gross Advances increased by 28.62% to Rs 148,216 crore and Net Interest Income increased by 25.84% on a YoY basis to Rs 1,887 crore as NIM improved to 3.55% as on September 30, 2022. The lender reported Net NPA at 0.68 while Gross NPA reduced to 3.4%. Provision Coverage ratio improved to 96.06% as of 30.09.2022 as against 92.38% as of 30.09.2021. The same was 95.04% as of 30.06.2022.
Return on Assets (RoA) improved to 0.92% for Q2FY23 against 0.53% for Q2FY22 and Return on Equity (RoE) also improved to 18.32% for Q2FY23 against 11.45% for Q2FY22.
AS Rajeev, MD and CEO of Bank of Maharashtra commenting on the future outlook stated that the margins will remain steady and be around 3.5% for FY23. The bank expects to expand its loan book by about 25% in FY23. The management feels that the growth is sustainable with sound asset quality and prudent borrower selection.
The bank’s total capital adequacy ratio (CAR) stood at 16.71% in September 2022, up from 14.67% a year ago. The present capital level is comfortable to support loan growth and BoM may look at raising equity capital in the last quarter of FY23 or early next financial year to reduce government stake.
Bank of Maharashtra (BOM) closed for the day with a gain of 5.01% at Rs 18.85. Shares of BOM logged an intraday high and low of Rs 19 and 18, respectively.
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