BoM to raise up to ₹1,000 crore through QIP in Q4FY23
2 min read 16 Jan 2023, 10:40 PM ISTBank of Maharashtra (BoM) to raise up to ₹1,000 crore from share sale in Q4 said MD on Monday.
PremiumThe state-owned Bank of Maharashtra (BoM), which reported solid Q3 results, announced on Monday that it aims to raise up to ₹1,000 crore via qualified institutions placement (QIP) in the January-March quarter pr Q4FY23 in order to comply with Sebi's minimum public shareholding (MPS) standards. A S Rajeev, managing director of BoM, stated that the bank has commenced the procedure to comply with Sebi's (the Securities and Exchange Board of India) regulations.
"It will be done in a piecemeal manner and we are looking at QIP between ₹500 and ₹1,000 crore in the current quarter," MD said by adding that going forward other means would be explored for dilution of the government's stake.
According to Sebi regulations, listed entities must have at least a 25% public shareholding. He said that the Indian government now holds 90.97% of the bank, with the holding expected to drop to about 85% after share sales. According to him, the bank is at ease with the capital requirements and the capital adequacy ratio will cover a 20% growth in loan volume over the next two years. He stated that the bank anticipates growth of roughly 12% in deposits for the current fiscal year.
The lender said on Monday that its Q3FY23 net profit climbed from ₹325 crore in Q3FY22 to ₹775 crore in Q3FY23, a 138.76% YoY growth. Operating profit for the bank improved by 35.94% YoY from Q3FY22 to Q3FY23, going from ₹1,162 crore to ₹1,580 crore. In Q3FY23, Net Revenues (Net Interest Income plus Other Income) rose by 22.56% from Q3FY22 to Q3FY23, or from ₹2,138 crore to ₹2,620 crore. Net Interest Income (NII) grew by 29.65% YoY to ₹1,980 crore from ₹1,527 crore.
According to Bank of Maharashtra, its Return on Assets (ROA) accelerated to 1.30% for Q3FY23 from 0.60% for Q2FY22 and 0.92% for Q2FY23, while its Return on Equity (ROE) improved to 24.41% for Q3FY23 from 13.49% for Q3FY22 and 18.32% for Q2FY23. Its Cost to Income Ratio reached 39.69% for Q3FY23 as opposed to 45.63% for Q3FY22.
According to Bank of Maharashtra, its overall business climbed by 15.77% YoY to ₹365,398 crore in Q3FY23, while its total deposits rose by 11.69% to ₹208436 crore. Gross advances grew 21.67% YoY to ₹156,962 Cr in Q3FY23 compared to Q3FY22 at ₹129,006 Cr. Net Advances improved by 23.02% YoY to ₹153,065 crore in Q3FY23. Gross NPA declined from 4.73% on December 31, 2021, to 2.94% on December 31, 2022, according to the lender. BoM said its Net NPA decreased from 1.24% in Q3FY22, to 0.47% in Q3FY23.
Today's NSE closing price for Bank of Maharashtra shares was ₹33.20 a piece, up 4.73% from the previous close of ₹31.70. In contrast to the 20-Day average volume of 57,230,612 shares, the stock saw a total volume of 121,992,374 shares.
