Bank of Maharashtra Q2 Results: Profit rises 23% YoY as net interest income boosts earnings

Synopsis

Bank of Maharashtra reported a 23% jump in net profit to Rs 1,633 crore for September quarter, driven by a 16% rise in net interest income. Pre-provision operating profit increased 17%, while asset quality remained stable and deposits grew 12%.

Bank of Maharashtra has booked a 23% rise in net profit at Rs 1633 crore in the quarter ending September 30 against Rs 1327 crore in the year-ago period, backed by higher net interest income. The state-owned lender's asset quality remained stable.

Its pre-provision operating profit grew 17% year-on-year at Rs Rs 2,574 crore as against Rs 2,202 crore, helped by a near 16% rise in net interest income at Rs 3,248 crore.

The bank's net interest margin for the quarter was 3.85%, 10 basis points lower as compared with 3.95% in the preceding three-month period.

"If there is no rate cut this year, then there would be no further contraction in NIM," bank managing director Nidhu Saxena said.

Earnings from treasury operation during the quarter was higher at Rs 120 crore when compared to the year-ago period's Rs 89 crore but was sharply lower from the preceding quarter's Rs 193 crore.

Its gross advances expanded by 16.8% year-on-year to Rs 2.54 lakh crore at the end of September while total Deposits rose 12% to Rs 3.10 lakh crore, leading to a rise in credit-deposit ratio to 82%.

Its gross non-performing assets ratio improved a shade to 1.72% as on September 30, against 1.74% three months back. Net NPA remained stable at 0.18%.

It set aside Rs 583 crore to cover bad loans in the quarter as compared with Rs 598 crore in the year ago period. Total provision was however higher at Rs 941 crore against Rs 875 crore due to higher provision for taxes.

Its share price on BSE fell 4.15% to Rs 55.18 on Tuesday.

The bank said that the supply chain disruptions due to the US tariff, Russia-Ukraine Conflict and Middle instability are the key challenges.

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