Bank of Maharashtra records more than two-fold jump in its net profit, shares jump over 8%
Bank of Maharashtra has announced a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023.
Shares of Bank of Maharashtra surged over 8 per cent on Monday, April 24 after the public sector bank reported a more than two-fold jump in its net profit at Rs 840 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The lender recorded an increase in its gross advance by 29.49 per cent and stood at Rs 1,75,120, but the current account savings account (CASA) declined by 2.89 per cent year-on-year (YoY).
Bank’s total deposits stood at Rs 2,02,294 which was an increase of 15.71 per cent YoY. During the quarter, the bank's total income increased to Rs 5,317 crore as against Rs 3,949 crore a year ago, BoM said in a regulatory filing. Interest income grew to Rs 4,495 crore during the period under review, from Rs 3,426 crore in the corresponding quarter a year ago.
Gross non-performing assets (NPAs) were reduced to 2.47 per cent of gross advances as of March 31, 2023, from 3.94 per cent by the end of March 2022. Net NPAs also came down to 0.25 per cent of the advances from 0.97 per cent at the end of 2022. The fall in the bad loan ratio helped cut the provisions towards NPAs for Q4FY23 to Rs 545 crore as compared with Rs 568 crore a year ago.
The company also informed through its regulatory filing that it aims to raise capital of up to Rs 7,500 crore.
“Raising of Capital up to Rs 7,500/- crore through Follow-on Public Offer (FPO) / Rights issue / Qualified Institutional Placement (QIP) issue, Preferential issue or any other mode or combination thereof and/or through the issue of BASEL III Bonds or such other securities as may be permitted under applicable laws, etc., subject to the necessary approvals,” the filing read.
Last seen, shares of the Bank of Maharashtra traded 8.26 per cent higher on NSE at Rs 30.15 apiece, and on BSE the scrip quoted Rs 30.05 apiece. (please update with the closing price)
Bank of Maharashtra dividend announcement
The bank's board has announced a dividend of Rs 1.30 per share or 13 per cent of Rs 10 face value out of the net profits for the year ended March 31, 2023.
(With PTI inputs)
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