Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in terms of loan growth in percentage terms during Q2 FY23.

The Pune-headquartered lender recorded 28.62 per cent increase in gross advances at ₹1,48,216 crore at the end of September 2022, according to published quarterly numbers of public sector banks (PSBs).

It was followed by Union Bank of India with 21.54 per cent growth to ₹7,52,469 crore. State Bank of India stood at third spot with 18.15 per cent jump in gross advances.

However, SBI's total loans were about 17 times higher at ₹25,47,390 crore as compared to ₹1,48,216 crore of BoM in absolute terms.

With regard to Retail-Agriculture-MSME (RAM) loans, BoM recorded the highest growth of 22.31 per cent followed by Bank of Baroda with 19.53 per cent and SBI at 16.51 per cent during Q2.

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As far as low-cost Current Account Savings Account (CASA) deposits are concerned, BoM topped the chart with 56.27 per cent followed by Canara Bank at 50.99 per cent.

BoM and SBI with 3.55 per cent Net Interest Margin (NIM), a key profitability parameter, stood at the top among PSBs. It was followed by Bank of India at 3.49 per cent and Central Bank of India at 3.44 per cent.

BoM and SBI were in the lowest quartile as far as gross non-performing assets (NPAs) and net NPAs were concerned.

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As per the analysis, gross NPAs reported by BoM and SBI were 3.40 per cent and 3.52 per cent of their total advances, respectively, in the second quarter. Net NPAs of these banks came down to 0.68 per cent and 0.80 per cent, respectively, at the end of September 2022.

Moreover, BoM has 16.71 per cent Capital Adequacy Ratio, the highest among PSBs, followed by Canara Bank at 16.51 per cent, and Indian Bank at 16.15 per cent at the end of Q2 FY23.

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Profit surges 12 percent at ₹1,225 crore

Finance Minister Nirmala Sitharaman, last week, said the Government's efforts to reduce bad loans have yielded results with all the 12 PSBs reporting 50 per cent jump in combined net profit at ₹25,685 crore in the second quarter.

In H1 FY23, the cumulative net profit of all PSBs increased by 32 per cent to ₹40,991 crore.