Pune-headquartered Bank of Maharashtra (BoM) reported a 45 per cent year-on-year (yoy) jump in fourth quarter (Q4FY24) net profit at ₹1,218 crore against ₹840 crore, buoyed by healthy growth in net interest income and non-interest income, and relatively lower tax provision burden.

Besides approving financial results, the public sector bank’s board on Friday also recommended a dividend of ₹1.40 per equity share of ₹10 face value for FY24 and approved raising of ₹7,500 crore capital, including equity issuance, in FY25.

Nidhu Saxena, MD & CEO, said the bank will sustain the profitability and efficiency parameters assiduously built over the last 15 quarters or so even as it has set its sights on turning into a bank of great significance through a notch up in its ranking (by business size) among public sector banks in the next one year and by two notches in 2-3 years. Currently, BoM is ranked 11th among 12 PSBs.

NII grows

Net interest income (difference between interest earned and interest expended) in the reporting quarter was up 18 per cent yoy at ₹2,584 crore (₹2,187 crore in the year-ago period).

Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 24 per cent yoy to ₹1,022 crore (₹822 crore).

While provisioning for non-performing assets (NPAs) declined 16 per cent yoy to ₹457 crore (₹545 crore), provision for standard/restructured assets jumped 75 per cent yoy to ₹491 crore (₹280 crore). Income tax provisions were lower at ₹50 crore (₹71 crore).

Net interest margin (yearly) rose to 3.92 per cent against 3.56 per cent in the year ago period.

GNPAs position improved to 1.88 per cent of gross advances as at March-end 2024 against 2.04 per cent as at December-end 2023. Net NPAs position too improved a shade to 0.20 per cent of net advances against 0.22 per cent.

Advances up

Gross advances increased by 16.30 per cent yoy to ₹2,03,664 crore as at March-end 2024 on the back of 24.21 per cent growth in RAM (retail, agriculture and MSME) advances and 5.76 per cent growth in corporate & other advances.

Total deposits rose by 15.66 per cent yoy to stand at ₹2,70,747 crore as at March-end 2024. Low-cost CASA (current account, savings account) deposits declined to 52.73 per cent of total deposits against 53.38 per cent in the year ago quarter.

Expansion plan

Saxena said the bank expects advances and deposit growth of 16-20 per cent and 12-15 per cent, respectively, in FY25. NIM will be in the 3.70-3.90 per cent range. The bank is planning to add about 200 branches in FY25.

On the proposed equity issuance, which could happen in 2-3 tranches, the BoM chief observed that while the bank’s current level of capital is enough to take care of credit growth requirements in the next one year, the bank will tap the market at an opportune time to meet SEBI’s minimum public shareholding norm of 75 per cent and also bolster the capital adequacy ratio.