Bank of Maharashtra Gross NPA Improved to 1.85% in Q1 FY24
Bank of Maharashtra's Gross Non-Performing Assets (NPA) improved to 1.85% in Q1 FY24, down from 2.28% in the previous year, signaling effective asset quality management amidst economic challenges.
by Damodharan N
Updated Jul 16, 2024
Bank of Maharashtra has reported significant improvements in its financial results for the first quarter of fiscal year 2024. The bank's Gross Non-Performing Assets (NPA) decreased to 1.85% as of June 30, 2024, marking a notable improvement from 2.28% reported in the same period last year.
This improvement underscores the bank's effective management of asset quality amidst challenging economic conditions. Additionally, the bank's Net NPA improved to 0.20% as of June 30, 2024, reflecting robust provisioning and recovery efforts.
The bank also reported a substantial increase in Total Business, Total Deposits, and Gross Advances, highlighting its strong operational performance and strategic growth initiatives in key business segments.
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Bank of Maharashtra Q1 FY24 Financial Results
Bank of Maharashtra has released its financial results for the first quarter ended June 30, 2024, showcasing robust performance across key metrics. The bank's total business expanded by 13.43% year-on-year to ₹476,447 crore, driven by substantial growth in deposits and advances.
Deposits increased by 9.43% to ₹267,416 crore, with Current Account Savings Account (CASA) constituting 49.86% of total deposits. Gross advances surged by 18.99% to ₹209,031 crore, reflecting strong lending activity.
The bank's asset quality showed notable improvement, with gross non-performing assets (NPA) reducing to 1.85% from 2.28% a year ago. Net NPAs also improved to 0.20%, down from 0.24% in the previous year. The provision coverage ratio remained robust at 98.36%, ensuring adequate coverage against potential loan losses.
Bank of Maharashtra reported a significant increase in profitability, with net profit soaring by 46.64% year-on-year to ₹1,293 crore. Operating profit grew by 23.14% to ₹2,294 crore, while net interest income (NII) rose by 19.63% to ₹2,799 crore. Non-interest income surged to ₹894 crore, reflecting a 42.16% increase from the previous year.
The bank's capital adequacy ratio under Basel III improved to 17.04%, with a strong Common Equity Tier 1 ratio of 12.20%, ensuring robust capital reserves. Return on assets (ROA) improved to 1.72%, and return on equity (ROE) rose to 27.62%, underscoring efficient utilization of resources and enhanced shareholder value.
|
Profitability (₹ in crore) |
Jun 23 |
Jun 24 |
Change (%) |
|
Particulars |
|
||
|
Total Income |
5,417 |
6,769 |
+24.94% |
|
Total Expenses |
3,554 |
4,475 |
+25.89% |
|
Operating Profit |
1,863 |
2,294 |
+23.14% |
|
Provisions & Cont. other than taxes |
776 |
951 |
+22.47% |
|
Profit before tax |
1,087 |
1,343 |
+23.61% |
|
Tax Expense |
205 |
50 |
-75.45% |
|
Net Profit |
882 |
1,293 |
+46.64% |
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Market Reaction
On July 15th, MAHABANK's stock opened higher at Rs. 68.75, up from the previous day's close of Rs. 68.05. The trading volume remained significant, with over 11.61 crore shares traded.
The stock's lowest point during the day was at Rs. 64.80, reflecting some volatility in intraday trading this morning the price reached 70 Rs for a brief moment and fell down to 68Rs amidst overall positive market reaction to recent announcements.
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Bank of Maharashtra
The Bank of Maharashtra, established in 1935 as a result of efforts led by the Mahratta Chamber of Commerce, plays a pivotal role in Maharashtra's financial landscape. Initially conceived to address the region's banking needs.
It has evolved into a comprehensive financial institution offering retail, corporate, MSME, agri, international, and investment banking services. Emphasizing digital banking and robust risk management, it serves diverse customer segments with a commitment to financial inclusion and community development.
Through its extensive network and customer-centric approach, the bank continues to support economic growth and prosperity across Maharashtra.
Bank of Maharashtra Gross NPA Improved to 1.85% in Q1 FY24 FAQs
1. What was Bank of Maharashtra's Gross NPA in Q1 FY24?
Bank of Maharashtra's Gross Non-Performing Assets (NPA) improved to 1.85% from 2.28% in the previous year.
2. How did Bank of Maharashtra's Net NPA change in Q1 FY24?
Bank of Maharashtra's Net NPA improved to 0.20% from 0.24% in the previous year.
3. What was the Provision Coverage Ratio (PCR) for Bank of Maharashtra in Q1 FY24?
Bank of Maharashtra reported a Provision Coverage Ratio of 98.36% as of June 30, 2024.
4. How much did Bank of Maharashtra's net profit increase in Q1 FY24?
Bank of Maharashtra's net profit soared by 46.64% year-on-year to ₹1,293 crore in Q1 FY24.
5. What was the Operating Profit of Bank of Maharashtra in Q1 FY24?
Bank of Maharashtra's Operating Profit increased by 23.14% to ₹2,294 crore in Q1 FY24.
6. How did Bank of Maharashtra's Net Interest Income (NII) change in Q1 FY24?
Bank of Maharashtra's Net Interest Income rose by 19.63% year-on-year to ₹2,799 crore in Q1 FY24.
7. What was Bank of Maharashtra's Non-Interest Income in Q1 FY24?
Bank of Maharashtra reported Non-Interest Income of ₹894 crore, reflecting a 42.16% increase from the previous year.
8. What was the Cost to Income Ratio for Bank of Maharashtra in Q1 FY24?
Bank of Maharashtra's Cost to Income Ratio stood at 37.87% in Q1 FY24.
9. What were the capital adequacy ratios of Bank of Maharashtra in Q1 FY24?
Bank of Maharashtra's Capital Adequacy Ratio (CAR) under Basel III improved to 17.04%, with a Common Equity Tier 1 (CET1) ratio of 12.20%.
10. How did Bank of Maharashtra's Return on Assets (ROA) and Return on Equity (ROE) change in Q1 FY24?
Bank of Maharashtra's ROA improved to 1.72% and ROE rose to 27.62% in Q1 FY24, indicating efficient use of assets and enhanced shareholder value.