Forever News
Pune: Bank of Maharashtra came out with colourful Q1 results. The lender had posted a profit of Rs 451.9 crore in the year-ago period.
Bank of Maharashtra on Wednesday (July 19) reported a 95 per cent year-on-year (YoY) jump in its standalone net profit at Rs 882.08 crore for the quarter ended June 30, 2023 (Q1FY24). The lender had posted a profit of Rs 451.9 crore in the year-ago period. The bank’s net interest income (NII) increased 38.7 per cent YoY to Rs 2,339.72 crore against Rs 1,685.71 crore logged in the year-ago period.
Seen in the photo from left to right: Asheesh Pandey, Executive Director, A S Rajeev MD & CEO & A B Vijayakumar Executive Director, Bank of Maharashtra
During the presentation, the management team narrated the success story behind making a profit every quarter due to minimizing slippages and enhanced performance from the grass root level to the branch level also catalyzed by the good business and the ever-increasing need for advances. It is the process that good governance can take the business to a new high.
Net Interest Income increased by38.80 % to Rs 2,340crore for the quarter ended June 30, 2023, has been arrived at after considering provisions for non-performing assets, standard assets (including COVID-19-related provisions), restructured accounts, loss on sale of assets to ARCS, depreciation and provision on investments, provision for exposure to entities with unhedged foreign currencies, depreciation on fixed assets, taxes, and other usual and necessary provisions on the basis of prudential norms, estimates, and specific guidelines issued by RBI and on the basis of the accounting policies as those followed in the preceding financial year ended March 31, 2023.
On the asset quality front also there is a greater improvement in terms of the percentage of slippages brought to a negligible level. The amount of gross non-performing assets (GNPAs), or bad loans, declined to Rs 4,006.73 crore in the June quarter, compared to Rs 4,334 crore in the previous quarter. Net NPA stood at Rs 413.87 crore against Rs 435.18 crore in the previous quarter. In terms of percentage, GNPAs stood at 2.28 per cent against 2.47 per cent in the previous quarter. Net NPAs stood at 0.24 per cent against 0.25 per cent in the previous quarter.
While looking at the other financial ratios, the lender’s debt-to-equity ratio for the quarter under review stood at 0.37 per cent against 0.49 per cent in the preceding quarter. In the year-ago period, it was 0.27 per cent. Total debt to total assets was 2.41 per cent as compared to 4.02 per cent in the March 2023 quarter and 8.22 per cent in the June 2022 quarter.
The operating profit margin was flat at 34.39 per cent and the net profit margin increased to 16.28 per cent against 15.80 in the previous quarter and 11.97 per cent in the June 2022 quarter.
In the capital adequacy, the total basel III capital adequacy ratio improved to 18.07% with a common equity tier 1 ratio of 14.36% for Q1FY24.
