Bank of Maharashtra reports 95% jump in Q1 net profit, NII rises 39%; stock zooms 4%

Bank of Maharashtra Q1 results: 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.

The lender said that the financial results for the quarter ended June 30, 2023, have 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.

Bank of Maharashtra Q1: Asset quality improves

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.

Bank of Maharashtra Q1: 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. 

Shares of the lender ended 5.65 per cent higher at Rs 33.28 apiece on the BSE.