Bank of Maharashtra’s Q4FY23 net profit soars 136%
Bank of Maharashtra (BoM) has reported its highest ever quarterly net profit at ₹840 crore, with a minimal boost to healthy growth in both net interest income and non-interest income and sharply lower tax burden.
The Pune-based public sector bank’s net profit in the aforementioned quarter jumped by 136 per cent year-on-year (YoY) as against Rs.355 crore in the same period last year.
The Bank’s Board of Directors has recommended a dividend of Rs 1.30 per share of Rs 10 per fully paid up share (i.e. 13 per cent).
In the reporting quarter, net interest income (the difference between interest earned and interest disbursed) increased by 36 per cent year-on-year at ₹2,187 crore (Rs. 1,612 crore in the year-ago quarter).
Non-interest income, which includes fee-based income, treasury income and recoveries from written-off accounts, increased by 57 per cent year-on-year at Rs.822 crore (Rs.522 crore). Recovery on accounts written off rose 345 per cent to Rs.488 crore (Rs.110 crore).
provision for tax
Provision for tax (net of deferred tax assets) decreased by 85 per cent year-on-year to Rs.71 crore (Rs.458 crore).
However, provisions and probabilities (other than tax), including provisions for non-performing assets (NPAs), standard/restructured assets and non-performing investments rose to Rs.945 crore (Rs.365 crore).
At the end of March 2023, the total non-performing assets decreased to 2.47 percent of the total advances, compared to 3.94 percent at the end of March 2022. The net position of NAPs improved to 0.25 percent of the net advances, compared to 0.97 percent.
net interest margin
The net interest margin (NIM) improved to 3.78 percent from 3.17 percent.
Rajiv, Managing Director and Chief Executive Officer, expects the bank to reach total business (deposits plus advances) of INR 5 crore in FY24 from INR 4.09 crore in FY23 and maintain NIM above 3.50 per cent.
The bank expects advances to grow by 20-22 percent in FY24 against a growth of 30 percent in FY23.