Bank of Maharashtra Q3 net doubles on robust NII

Bank of Maharashtra posted a 110.7 per cent rise in net profit at Rs 325 crore for the third quarter ended December 2021 (Q3FY22) on robust growth in net interest income.

The net profit was Rs 154 crore in Q3FY21 and Rs 263 crore in the second quarter ended September 2021 (Q2FY22).The Pune-based lender's stock was trading 2.56 per cent lower at Rs 20.95 per share on BSE.

Net Interest Income (NII) grew by 16.90 per cent to Rs 1,527 crore in Q3FY22 as against Rs 1,306 crore for Q3FY21. Sequentially, growth was flat with NII of Rs 1,500 crore in Q2FY22.Public sector lender’s net interest margin (NIM) improved to 3.11 per cent in Q3FY22 from 3.06 per cent in Q3FY21. Sequentially, NIM declined from 3.27 per cent in Q2FY22.

The non-Interest income rose by 6.35 per cent on YoY basis to Rs 611 crore in Q3FY22 from Rs 575 crore in Q3FY21. Sequentially, it declined substantially from Rs 832 crore in the quarter ended September 2021.

Its gross Advances grew by 22.98 per cent on YoY basis to Rs 1,29,006 crore in Q3FY22 as against Rs 1,04,904 crore in Q3FY21.The total Deposits up by 15.21 per cent to Rs 1,86,614 crore in Q3FY22 from Rs 1,61,971

A S Rajeev, managing director and chief executive said the credit growth is expected to be 17-20 per cent in the current financial year (FY22). The liabilities (deposits) are expected to grow by 10-12 per cent growth in FY22. The focus is on growth with stability and compliance.

Its provisions for non-performing assets were higher at Rs 587 crore in Q3FY22, up from Rs 385 crore in Q3FY21. Provisions were down from Rs 921crore in Q2 FY22.The Provision Coverage Ratio (PCR) improved to 93.77 per cent at end of December 2021 from 89.55 per cent a year ago and 92.38 per cent as of September 2021.

Its Gross NPA declined to 4.73 per cent in December 2021 from 7.69 per cent a year agoas and 5.56 per cent in September 2021. The bank wrote-off NPAs of Rs 500 crore in Q3FY22.The Net NPA reduced to 1.24 per cent in December 2021 from 2.59 per cent a year ago and 1.73 per cent in September 2021.

The current capital adequacy level is adequate for regulatory and business requirements. Yet, the bank plans to raise equity capital of Rs 500-750 crore in the current quarter for future growth considerations. It will approach institutional investors to raise fresh capital.

Bank may also look at Rs 1,000 crore through tier I bonds in the first quarter of next financial year (FY23), Rajeev said.Its Capital adequacy ratio stood at 14.85 per cent in December 2021, up from 13.65 per cent in December 2020.