Bank of Maharashtra posted 138% growth in PAT, stock rallies over 4%
2 min read 16 Jan 2023, 06:24 PM ISTThe public sector lender Bank of Maharashtra (BoM) has released its Q3FY23 earnings today.
PremiumThe public sector lender Bank of Maharashtra (BoM) has released its Q3FY23 earnings today. The bank's net profit grew by 138.76% YoY to ₹775 crore in Q3FY23 from ₹325 crore in Q3FY22. On a Q-o-Q sequential basis, the same is up 44.85%. As compared to Q3FY22, the bank's operating profit increased by 35.94% YoY to ₹1,580 crore for Q3FY23 from ₹1,162 crore. On a QoQ basis, the same has improved by 8.10%.
Net Interest Income (NII) increased by 29.65% YoY to ₹1,980 crore in Q3FY23 from ₹1,527 crore in Q3FY22. The same is up 4.91% on a QoQ basis, while Net Revenues (Net Interest Income + Other Income) for Q3FY23 climbed by 22.56% from ₹2,138 crore for Q3FY22 to ₹2,620 crore for Q3FY23. On a quarterly basis, the same is up 9.67%.
Cost to Income Ratio reached 39.69% for Q3FY23 as against 45.63% for Q3FY22. The same was 38.82% for the quarter ended September 2022. According to the bank, its Return on Assets (ROA) increased to 1.30% for Q3FY23 from 0.60% for Q2FY22 and 0.92% for Q2FY23, while its Return on Equity (ROE) increased to 24.41% for Q3FY23 from 13.49% for Q3FY22 and 18.32% for Q2FY23.
Bank of Maharashtra said that in Q3FY23, its total business grew by 15.77% YoY to ₹365,398 crore and its total deposits increased by 11.69% to ₹208436 crore. In comparison to Q3FY22 at ₹129,006 Cr, gross advances increased 21.67% YoY to ₹156,962 crore in Q3FY23. In Q3FY23, Net Advances climbed by 23.02% YoY to ₹153,065 crore, while RAM (Retail, Agri., & MSME) Business increased by 19.18%. On a YoY basis, retail advances increased by 23.12% to ₹40,312 crore. For Q3FY23, MSME advances increased by 21.62% YoY to ₹30,517 crore.
According to the Bank of Maharashtra, its overall Basel III capital adequacy ratio accelerated to 17.53% for the third quarter of FY23, with the Common Equity Tier 1 ratio of 13.47%. The bank also reported that it raised ₹348 crore in Tier II capital and ₹1,590 crore in Tier I capital during the period that ended on December 31, 2022.
According to the lender, Gross NPA dropped from 4.73% on December 31, 2021, to 2.94% on December 31, 2022 and the same was 3.40% as on September 30, 2022. Net NPA decreased from 1.24% on December 31, 2021, to 0.47% on December 31, 2022 and the same was 0.68% in Q2FY23. The provision coverage ratio increased from 93.77% on December 31, 2021, to 97.18% on December 31, 2022. The percentage remained at 96.06% as of September 30, 2022. As of December 31, 2022, the bank has a cumulative Covid-19 provision of ₹1,200 crore.
The shares of Bank of Maharashtra closed today on the NSE at ₹33.20 apiece level, up by 4.73% from the previous close of ₹31.70. The stock recorded a total volume of 121,992,374 shares compared to the 20-Day average volume of 57,230,612 shares.
