bank of maharashtra q1 share price: Bank of Maharashtra Q1 Results: Profit jumps 117% to Rs 452 crore, asset quality improves

State-owned reported a net profit of Rs 452 crore in the June quarter, registering a 117% jump over the year-ago period’s number owing to handsome gains in net interest margin and lower total provisions.

Net profit was Rs 208 crore in the year-ago period.

Net interest margin, a key profitability parameter for banks, improved to 3.28% for the quarter under review against 3.08% in the year-ago period.

Managing director AS Rajeev, expressed confidence about further improvement in the economic activities as inflation has probably peaked. He expects BoM to achieve 20% advances growth this fiscal.

Its operating profit showed muted growth at Rs 1202 crore for the June quarter over the year-ago period’s Rs 1,107 crore, on account of a fall in income from treasury operations. However, a fall in provisions and contingencies at Rs 548 crore against Rs 753 crore helped the bank book a significantly higher net profit.

The bank’s net interest income grew by 19.9% at Rs 1,686 crore against Rs 1,406 crore in the year-ago quarter. Other income, which includes income from treasury fell to Rs 317 crore against Rs 687 crore in the same period.

Its gross advances jumped 27% year-on-year to Rs 1.41 lakh crore, largely buoyed by retail, agriculture and MSME lending.

Asset quality improved with gross non-performing assets ratio falling to 3.74% against 3.94% a quarter back while net NPA was at 0.88% against 0.97%.

Its capital adequacy ratio was at a robust 16%. Rajeev said the bank is not required to raise capital immediately but may consider raising about Rs 1000 crore of equity in the third or fourth quarter if the market condition supports it. It is in the process of raising Rs 1000 crore tier-2 capital soon.

Investors showed buying interest at the BoM counter pushing its share price 3.1% up to Rs 16.6 on BSE.