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Bank of Maharashtra Q4 results: Net profit up 45% at Rs 1,218 crore

Public sector lender mulls Rs 7,500 crore equity capital raise


Illustration: Ajay Mohanty

Abhijit Lele Mumbai

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Bank of Maharashtra (BoM) has reported a 44.95 per cent year-on-year (Y-o-Y) jump in its net profit to Rs 1,218 crore for the January-March quarter (Q4) of 2023-24 on the back of a steady rise in net interest income (NII) and uptick in fees and commissions.

Sequentially, the public sector lender’s profit rose by 17.6 per cent from Rs 1,036 crore in the quarter ended December (Q3) of financial year (FY) 2024.

As for annual performance, the Pune-based bank’s net profit for FY24 rose 55.84 per cent to Rs 4,055 crore from Rs 2,602 crore for FY23.  

Its board has recommended a 14 per cent dividend for FY24.

Its stock closed 3.65 per cent higher at Rs 67.62 per share on BSE on Friday even as leading indices were down by 0.7 – 0.8 per cent. The results came during market hours on Friday.

BoM’s Capital Adequacy Ratio (CAR) stood at 17.38 per cent with Common Equity Tier-1 (CET1) at 12.5 per cent as at the end of March 2024.

Nidhu Saxena, its managing director and chief executive officer, said the bank can comfortably support business in the ongoing financial year with current capital adequacy level.

However, beyond that (FY26 onwards), the bank would need growth capital and will also have to comply with regulatory norms to have at least 25 per cent public holding. This would mean the government’s stake is likely to decline from 86.46 per cent at the end of March 2024.

Bank plans to raise about Rs 7,500 crore in equity capital through two or three tranches, keeping in mind the market conditions and shareholders’ interest. It would like to maintain CAR between 16-17 per cent, Saxena said in a post results media conference.

The bank’s Net Interest Income (NII) expanded by 18.17 per cent to Rs 2,584 crore in Q4 of FY24, compared to Rs 2,187 crore Q4FY23. Sequentially, NII rose by 4.81 per cent over Q3 of FY24.

The bank’s net interest margin (NIM) improved to 3.97 per cent in Q4FY24 from 3.78 per cent in Q4FY23. Sequentially, too, NIM was up from 3.95 per cent in Q3 of FY24.

The non-interest income comprising fees, commissions and treasury earnings, etc expanded by 24 per cent to Rs 1,022 crore in Q4FY24 from Rs 822 crore in Q4FY23.

The lender’s provisions and contingencies were flat at Rs 942 crore in Q4, as against Rs 945 crore in the year-ago period.

Advances grew 16.3 per cent Y-o-Y to Rs 2.03 trillion at the end of March 2024. Total deposits increased 15.66 per cent Y-o-Y to Rs 2.7 trillion. The bank has guided for 15-16 per cent growth in advances and 12-15 per cent growth in deposits in FY25.
The lender should become a bank of greater significance where bottom line and topline are in harmony and move up two-three notches from 11th position amongst public sector banks, Saxena said. 

BoM’s gross non-performing asset (GNPA) ratio declined to 1.88 per cent in Q4 from 2.47 per cent a year ago and 2.04 per cent in the previous quarter. 

Net NPA ratio also improved to 0.20 per cent in March 2024 from 0.25 per cent in Q4FY23, and 0.22 per cent in the previous quarter.

The provision coverage ratio stood at 98.34 per cent in March 2024 compared to 98.4 per cent a year ago.

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First Published: Apr 26 2024 | 7:31 PM IST

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