Bank of Maharashtra Q2 profit rises 23%

 

In an exchange filing on October 13, the Bank of Maharashtra stated that its net profit for the September quarter increased by 23.09 percent year over year to Rs 1,633 crore, while its net interest income (NII) increased by 15.71 percent year over year to Rs 3,248 crore. 

 Following the release of the quarterly data, the lender's shares fell precipitously by more than 3%. In Q2FY26, operating profit increased 16.91% year over year to Rs 2,574 crore from Rs 2,202 crore in Q2FY25. 

 In Q2FY26, net revenue (or net interest income plus other income) increased 13.73 percent to Rs 4,093 crore. Compared to Q2FY25, when it was 38.81 percent, the Bank of Maharashtra's cost to income ratio improved to 37.10 percent in Q2FY26.

Compared to 1.74 percent for Q2FY24 and 1.80 percent for Q1FY25, the return on assets (RoA) increased to 1.82 percent for Q2FY26. In Q2FY26, the return on equity (RoE) was 22.58 percent, compared to 26.01 percent in Q2FY25. 

 The total business reached Rs 5,63,909 crore, an increase of 14.20 percent year over year. At Rs 3,09,791 crore, total deposits grew by 12.13 percent annually. Gross Advances reached Rs 2,54,118 crore, an increase of 16.83 percent year over year. 

 Retail advances have increased by 37.45 percent year over year, while RAM (Retail, Agri. & MSME) business rose by 16.94 percent. Compared to 1.84 percent on September 30, 2024, and 1.74 percent on June 30, 2025, gross non-performing assets (NPA) decreased to 1.72 percent on September 30, 2025.

Compared to 0.20 percent on September 30, 2024, and 0.18 percent on June 30, 2025, net non-performing assets (NPA) decreased to 0.18 percent on September 30, 2025. 

 As of September 30, 2025, the provision coverage ratio was 98.34 percent, compared to 98.36 percent on September 30, 2024, and 98.36 percent on June 30, 2025. With a Common Equity Tier 1 (CET1) ratio of 14.05 percent, the overall Basel III Capital Adequacy ratio increased to 18.13 percent.

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Bank of Maharashtra Q1 results, Net profit rises 23%

On Tuesday, July 15, the state-run Bank of Maharashtra Ltd. released its April–June quarter results. The lender's core income, or net interest income, climbed from ₹2,800 crore to ₹3,292 crore, an 18% year-over-year gain. 

 The period's net profit climbed from ₹1,293 crore to ₹1,593 crore, a 23% rise. Despite lower other income than in the same quarter previous year, net profit increased during the quarter. Sequentially, the period's asset quality stayed constant. Both net and gross non-performing assets (NPA) stayed at 0.18% and 1.74%, respectively, from the March quarter.

Compared to the previous quarter's ₹983.29 crore, the quarter's provisions were ₹867.41 crore. On a sequential basis, slippages over the period have increased. At the conclusion of the June quarter, total slippages were ₹727 crore, up from ₹660 crore during the March quarter. 

 While deposits increased by 14% from the same quarter last year to ₹3.05 lakh crore, Bank of Maharashtra reported business growth of 14% from the previous year to ₹5.46 lakh crore in its post-earnings statement. 

 Gross Advances were ₹2.41 lakh crore, increasing 15.34% from the previous year.Net Interest Margins during the June quarter stood at 3.95%, which is nearly the same as 3.97% it reported in the June quarter last year and 4.01% reported during the March quarter.

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RBI imposed Penalty on 4 Major Banks

 

Four major banks, Bank of Baroda, IDBI Bank, Bank of Maharashtra, and ICICI Bank, have recently been hit with financial fines by the Reserve Bank of India (RBI) for noncompliance with key regulatory requirements. Following RBI examinations of the banks' operational and financial operations for the fiscal years 2023 and 2024, these fines were imposed. These fines are intended to improve adherence to banking regulations and guarantee that banks conduct themselves in an open and accountable manner. The RBI underlined, however, that these measures are only connected to regulatory matters and have no bearing on the legality of agreements or transactions between banks and their clients.

Bank of Baroda(BoB)

For failing to observe RBI guidelines regarding customer service and deposit interest rates, Bank of Baroda was fined Rs.61.40 lakh. In violation of the regulations, the bank permitted an insurance company to provide non-cash incentives to its employees. Additionally, some frozen or dormant savings accounts did not get timely interest credits. 

IDBI Bank 

In 2023, these problems were discovered during an RBI examination. Following a personal hearing and an assessment of the bank's response, the RBI chose to issue the penalty after the bank was requested to explain its actions.

For violating the RBI's guidelines under the Interest Subvention Scheme, which offers farmers interest relief on short-term loans made through the Kisan Credit Card (KCC), IDBI Bank was fined Rs.31.80 lakh.

Bank of Maharashtra 

BoM received a fine of Rs.31.80 lakh for failing to fully comply with Know Your Customer (KYC) rules. The bank opened several deposit accounts using Aadhaar-based e-KYC through OTP, in a non-face-to-face manner, but did not meet all the regulatory requirements for such processes. This was identified during the RBI’s evaluation for the financial year ending March 31, 2024. The bank’s explanations and submissions were reviewed, and the penalty was imposed for deficiencies in following the KYC norms.

ICICI Bank 

ICICI Bank faced the highest penalty of Rs.97.80 lakh. The bank failed to report a cyber security incident to the RBI within the required time, did not implement an effective system for alerting suspicious account activity, and also failed to send credit card statements to certain customers—yet charged them late payment fees. These failures were considered serious breaches of customer service and operational transparency. After a detailed inspection and review of the bank’s responses, the RBI imposed the penalty.These penalties are aimed at reinforcing the importance of following regulatory standards. RBI emphasized that these fines are not judgments on the legal validity of customer transactions or contracts, but are strictly based on gaps in compliance. Penalties have been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.

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Bank of Maharashtra Q4 Net profit rises 23%

Bank of Maharashtra announced a standalone net profit for the fourth quarter of FY25 of Rs 1,493.08 crore on April 25 which is up 22.6 percent from Rs 1,217.67 crore in the same period the previous year. According to the company's investor presentation, the expansion was bolstered by robust interest revenue, well-managed expenditures, and reduced provisioning requirements.

Bank of Maharashtra's net profit for FY25 increased by 36% to Rs 5,519.79 crore from Rs 4,055.03 crore for FY24. While full-year income jumped to Rs 28,401.62 crore from Rs 23,492.56 crore, the quarter's total income increased to Rs 7,711.44 crore from Rs 6,488.25 crore.

The total amount of interest earned in Q4 was Rs 6,730.78 crore. Operating profit rose to Rs 2,519.74 crore in the quarter, compared to Rs 2,209.62 crore in Q4FY24. The operating profit for the entire year was Rs 9,319.03 crore, up from Rs 8,005.34 crore the year before.

The entire amount spent (not including provisions) was Rs 19,082.59 crore for the year and Rs 5,191.70 crore for the quarter. In FY25, other operational expenses totaled Rs 2,358.48 crore, while personnel costs made up Rs 3,442.23 crore.

For the March quarter, provisions (not including taxes) were Rs 983.25 crore, a slight increase above Rs 942.30 crore in the same period last year. Provisions for the entire year decreased marginally from Rs 3,645.87 crore in FY24 to Rs 3,596.55 crore. In FY25, non-performing asset provisioning increased from Rs 2,174.27 crore to Rs 2,417.32 crore.

With regard to asset quality, the bank reported a capital adequacy ratio (CRAR) of 20.53 percent, up from 17.38 percent in FY24; the common equity tier 1 ratio improved to 15.83 percent from 12.50 percent, while additional tier 1 capital stood at 1.03 percent; the bank's net worth increased to Rs 25,880.52 crore from Rs 17,177.58 crore a year earlier; and the gross non-performing asset (GNPA) ratio improved to 1.74 percent as of March 31, 2025, from 1.88 percent a year ago and 1.80 percent in the previous quarter.

The bank’s net worth rose to Rs 25,880.52 crore from Rs 17,177.58 crore a year earlier.Return on assets (non-annualised) improved to 1.75 percent for the year, up from 1.50 percent in FY24. Net profit margin stood at 19.43 percent, while operating margin was 32.81 percent. The board has proposed a final dividend of 15 percent, or Rs 1.50 per share, subject to shareholder approval.

As of March 31, 2025, total deposits stood at Rs 3,07,142.60 crore, up from Rs 2,70,747.17 crore a year earlier. Advances rose to Rs 2,36,083.80 crore from Rs 2,00,239.88 crore in the same period.

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This PSU Bank Announced Strike, All branches will remain closed on 20th March

Employees of the Bank of Maharashtra have declared a statewide walkout for March 20, 2025. The strike will resume on March 20, 2025, as the conciliation negotiations with management have failed. The other bank unions have also expressed their complete support to Bank of Maharashtra association. 

Bank of Maharashtra Employees have been asking the government and bank management to comply with their demands, but nobody has taken notice. With the following demands, the strike has now been declared.

Recruitment of PTS through Absorption of Temporary PTS:

Employees are demanding the absorption of Part-Time Sweepers (PTS) who are currently working on a temporary basis into permanent positions. The union argues that these employees have been serving the bank for years and deserve formal employment with proper benefits.

Adequate Recruitment in Sub-Staff and Clerical Cadre:

The union has raised concerns over staff shortages in sub-staff and clerical positions, which are affecting the efficiency of banking operations. They are calling for immediate recruitment to fill vacancies and ensure smooth functioning.

Filling Up of Special Assistant Posts as per Agreement:

Employees claim that certain posts of special assistants have remained vacant, despite previous agreements that mandated their filling. The union is demanding the implementation of the agreed-upon staffing policies.

Restoration of Bipartisan Practices:

The union has accused the bank management of unilaterally making decisions without consulting employee representatives, leading to dissatisfaction among staff. They are demanding the restoration of a bipartisan approach in decision-making, where employee unions have a say in policies affecting workers.

Restoration of Union Offices:

Employees are also demanding the reinstatement of union offices within bank premises, arguing that these offices play a crucial role in addressing employee grievances and ensuring effective communication between the workforce and management.

Honoring the De Jure Recognition Agreement:

The union has insisted that the bank management adhere to the De Jure Recognition Agreement in both letter and spirit, ensuring that employee rights and agreements are respected.

The banking industry will be significantly impacted by the strike. Additionally, the UFBU has declared a strike for March 24 and 25, 2025. Employees of Punjab National Bank have also declared a strike for March 28 and 29, 2025. The lack of employees is the biggest issue the banks are dealing with. Banks have been experiencing a staffing shortage for a while, but no one is taking notice. Other employees are compelled to work longer hours due to a staffing shortage, which has an adverse effect on their physical and emotional well-being.

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Bank of Maharashtra Recruitment For 172 Managerial Positions

Applications are being accepted for managerial posts at Bank of Maharashtra. Candidates that meet the requirements can apply on the official website. The goal of this hiring campaign is to cover 172 open positions within the company. The registration period will end on February 17, 2025, having started on January 29.

Eligibility Criteria

Candidates can check the detailed notification for information on educational qualifications and age limits.

Selection Process

A written exam, if necessary, and a face-to-face interview or discussion are part of the selection process. To create a shortlist of applicants, the bank may perform an initial screening of applications based on the qualifications, suitability, and experience of the individuals.

The ultimate choice will be determined by the score earned during the 100-point personal interview or discussion. applicants must receive at least 50 points (45 for SC, ST, and PwBD applicants) in order to be eligible.

If more than one applicant meets the cutoff score, they will be arranged according to age. Depending on the volume of applications submitted, the bank retains the right to alter the selection procedure. 

Application Fee

• UR/EWS/OBC: Rs  1,180
• SC/ST/PwBD: Rs 118

The fee can be paid online.

Emoluments: Presently, the starting basic pay applicable is as under:

• Scale 7- 156500 - 4340/4 - 1,73,860
• Scale 6-  1,40,500 - 4000/4 - 1,56,500
• Scale 5- 1,20,940 - 3,360/2 - 1,27,660 - 3680/2 - 1,35020
• Scale 4 1,02,300 - 2980/4 - 1,14,220 - 3,360/2 - 1,20,940
• Scale 3 8,59,20 - 2,680/5 - 99,320 - 2,980/2 - 1,05,280
• Scale 2 64,820 - 2,340/1 - 67,160 - 2,680/10 - 9,3960

Click here for 

Detailed Notification

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Bank Of Maharashtra Q3 Net profit jumps 36%

                                  

PSU lender Bank of Maharashtra's net profit increased significantly, while the quality of its assets remained steady. Net Interest Income (NII) or core income for the lender, climbed by 19% on a year-on-year basis to ₹2,944 crore.

 Additionally, the period's net profit rose 36% year over year to ₹1,406 crore. The state-run lender's asset quality did not change. Net NPA stayed at 0.2% from the September quarter, while Gross NPA increased from 1.84% to 1.8%. 

Read More - Q3FY25 Results of Banks in India

According to the Bank of Maharashtra's quarterly business update released earlier this month, deposits increased 13.5% year over year to ₹2.79 lakh crore. Nonetheless, the deposit growth was 1% on a sequential basis.

Read More -  Top 10 Government Banks in India 2024

Advances for the quarter reached ₹2.28 lakh crore, up 21.2% from the previous year. Additionally, the figure was 5.1% greater than the September quarter. 

CASA deposits rose 11.5% year over year to ₹1.37 lakh crore, while the CASA ratio was 49.28%, up from 49.29% in September and 50.19% in the same quarter previous year. The state-run lender's credit-deposit ratio was 81.95% in December, up from 78.72% in June and 76.78% the previous year.

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Government plans to sale stake in five PSU banks

A Rs.10,000 crore fund-raising plan for five state-run institutions via the Qualified Institutional Placement (QIP) route has been approved by the government.



According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

"The Department of Disinvestment and Public Asset Management (DIPAM) has also been mandated to sell a stake in these lenders through the Offer For Sale (OFS) route," the sources noted.



By August 2026, the government hopes to have a minimum of 25% of these PSU banks' shares held by the general people. The Department of Financial Services has administrative authority for state-run lenders.



According to the most recent shareholding pattern on the BSE, the government owns 79.6% of Bank of Maharashtra, 98.25% of Punjab & Sind Bank, 96.38% of Indian Overseas Bank, 95.39% of UCO Bank, and 93.08% of Central Bank of India as of the end of the December quarter.Based on the current share price, the excess government stake in these five lenders stands at nearly Rs.50,000 crore.

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Bank of Maharashtra Q2 Results: Net profit rises 44%

State-owned Bank of Maharashtra (BoM) on Tuesday posted a 44 per cent jump in its profit at Rs 1,327 crore in the second quarter ended September 2024 on account of improvement in interest income.

The Pune-based lender had posted a net profit of Rs 920 crore in the same quarter a year ago.Total income increased to Rs 6,809 crore during the quarter under review against Rs 5,736 crore in the same period last year, BoM said in a regulatory filing.

Talking about the financial performance, BoM Managing Director Nidhu Saxena said Net Interest Margin (NIM) increased to 3.98 per cent, from 3.88 per cent in the same quarter a year ago.

Among the stack of 12 public sector banks, BoM has the highest NIM, Saxena said, adding the target for the NIM for the current fiscal is 3.75-3.85 per cent anticipating a rate cut during the course of the year.

He further said the bank expects the net profit of the bank to cross Rs 5,000 crore during the current fiscal.In the H1, the profit has crossed Rs 2,500 crore and the trend will improve further going forward.The bank had earned a net profit of Rs 4,055 crore in the previous fiscal.

The bank earned interest income of Rs 6,017 crore during the quarter compared to Rs 5,068 crore in the same period a year ago.

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Bank of Maharashtra's Q1 net profit jumps 47%

Bank of Maharashtra on July 15 reported a significant increase in its Q1 net profit, which rose by 46.6 percent to Rs 1,293.5 crore, compared to Rs 882 crore in the same period last year, the lender said in an exchange filing.

The bank's net interest income (NII) also saw a robust growth of 20 percent, reaching Rs 2,799 crore from Rs 2,340 crore year-on-year (YoY).

The bank's asset quality showed slight improvement, with gross non-performing assets (NPA) at 1.85 percent, down from 1.88 percent quarter-on-quarter (QoQ).

However, the Net NPA remained unchanged at 0.20 percent during the same period. In absolute terms, gross NPA stood at Rs 3,873 crore compared to Rs 3,833 crore in the previous quarter, while net NPA was Rs 415 crore against Rs 409 crore QoQ.

The provisions for the quarter were reported at Rs 950 crore, slightly up from Rs 942 crore in the preceding quarter.

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Latest Bank Merger News : 4 PSU Banks likely to be merged

According to sources, the government has formulated its plan for the second round of merger of PSU banks. The government is considering two options for merging four small government banks. To facilitate the merger, changes are being prepared in the Banking Regulation Amendment Act. One option is to merge UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India.

The second option involves merging with Union Bank of India, Canara Bank, or Indian Bank according to the banking software. 

The government aims to make these changes in the Banking Regulation Amendment Act to facilitate the merger process. 

The functioning of UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, and Central Bank has shown improvement in the past few years. This is a developing story.

Let us tell you that the government has a 98.25 per cent stake in Punjab & Sind Bank.

While the government has a 93.08 per cent stake in Central Bank, 86.46 per cent in Bank of Maharashtra and a 95.39 per cent in UCO Bank.

The government had announced the merger of 10 public sector banks into four entities in 2019.

This was part of the government's policy to strengthen public sector banks (PSU Bank Mergers) to strengthen their finances for a strong national presence and global reach.

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Bank of Maharashtra Q4 Results: Net Profit Jumps 45% , Rs 1.40 Dividend Declared

Public sector lender Bank of Maharashtra on April 26 reported a net profit of Rs 1,218 crore for fiscal fourth quarter, a 45 percent jump from the year-ago period.

The bank had reported net profit of Rs 840 crore last year.The PSU lender also said that its board approved the proposal to raise up to Rs 7,500 crore through various modes.

"Board approved raising of Capital up to Rs 7,500 crore through Follow-on Public Offer (FPO) / Rights issue / Qualified Institutional Placement (QIP) issue, Preferential issue, ESPS or any other mode or combination thereof and / or through issue of BASEL III Compliant Tier I and Tier II Bonds or such other securities as may be permitted under applicable laws etc., ubject to the necessary approvals," said Bank of Maharashtra in a stock exchange filing.

Read More - Quarterly Results of PSU Banks for Q4FY24

 

The net interest income (NII) of the lender was up 18.2 percent YoY and stood at Rs 2,584 crore versus Rs 2,187 crore. The GNPA of the lender stood at 1.88 percent versus 2.47 percent last year and NNPA stood at 0.20 percent versus 0.25 percent last year.

The lender also declared a dividend of Rs 1.4 per equity share of Rs 10 face value. The provision coverage ratio of the bank stood at 98.34 percent. Net interest margin of the bank stood at 3.97 percent versus 3.78 percent last year.

On advances side, the bank witnessed a growth of 16.30 percent and total advances stood at Rs 2.03 lakh crore versus Rs 1.75 lakh crore last year. Deposits of the bank increased 15.66 percent and stood at Rs 2.7 lakh crore versus Rs 2.34 lakh crore last year.

Total branches of the bank increased to 2489 branches in March 2024 from 2203 branches in March 2o23.

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Bank of Maharashtra Q3 Net profit rises 34%

Bank of Maharashtra on January 16 reported a 33.61 percent on-year rise in its October-December quarter net profit to Rs 1,036 crore, on the back of rising net interest income and better asset quality.

Operating Profit has shown a growth of 27.32 percent on-year to Rs 2,012 crore for the third quarter of the current financial year as against Rs 1,580 crore in a similar period last year. The same has improved by 4.77 percent on-quarter.

In the reporting quarter, net Interest Income (NII) grew by 24.56 percent on-year to Rs 2,466 crore, as against Rs 1,980 crore in a similar period last year, Bank of Maharashtra said in an exchange filing. The same was up by 1.39 percent on a sequential basis.

Gross non-performing assets (NPA) of the bank declined to 2.04 percent as on December 31, 2023, against 2.94 percent as on December 31, 2022. Net NPA declined to 0.22 percent as on December 31, 2023, as against 0.47 percent as on December 31, 2022.

Provision Coverage ratio of the bank improved to 98.40 percent as on December 31,2023, as against 97.18 percent as on December 31, 2022.

Bank holds cumulative Covid-19 provision as contingency provision of Rs 1,200 crore as on December 31, 2023, release said.

In the reporting quarter, total business of the bank grew by 18.89 percent on-year to Rs 4.34 lakh crore.

Total Deposits rose 17.89 percent on-year in October-December to Rs 2.46 lakh crore. Gross Advances grew by 20.20 percent on-year Rs 1.89 lakh crore. Net Advances grew by 21.01 percent on-year to Rs 1.85 lakh crore.

RAM (Retail, Agri. & MSME) Business grew by 27.25 percent on-year basis. Retail advances grew by 21.91  percent to Rs  49,144 crore on-year basis. MSME advances grew by 29.14  percent on Y-o-Y basis to Rs 39,410 crore.

Total Basel III Capital adequacy ratio stood at 16.85 percent with Common Equity Tier 1 ratio of 11.56 percent.

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Latest Bank merger news of PSU banks and PSU Insurance Company

 

A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.

The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.

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Bank of Maharashtra Q2 Net profit surges 72% on year

 

State-owned Bank of Maharashtra (BoM) has announced a profit of 71.8 per cent at Rs 919 crore year on year (Y-o-Y) at the end of the July-September quarter (Q2) for the financial year 2023-24 (FY24) in its consolidated results. The announcement came through a regulatory filing on BSE on Monday.

Last year, the bank recorded a profit of Rs 4,317 crore for the same period. The total income for this quarter also went up 32.8 per cent Y-o-Y at Rs 5,735 crore from Rs 4,317 crore.

Compared to the previous quarter that ended in March, profits rose by 4.2 per cent from Rs 882 crore, and income rose by 5.86 per cent from Rs 5,417 crore.

Net Interest Income (NII) went up 28.9 per cent to Rs 2,432 crore from Rs1,887 crore, Y-o-Y.

Gross non-performing assets (NPA) are down to 2.19 per cent in Q2FY24. Last year, during the same period, it was 3.40 per cent. Net NPA declined to 0.23 per cent at the end of the latest quarter compared to Q2FY23, when it stood at 0.68 per cent. In Q1FY24, gross NPA stood at 2.28 per cent and net NPA at 0.24 per cent.

Operating costs have gone up by 27 per cent compared to the same period last year at Rs 1,179 crore from Rs 927 crore. Quarter-on-quarter, it was a marginal growth of 6.67 per cent from Rs 1,105 crore.

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Bank of Maharashtra(BoM) Q1 Results: Net profit surges 95%, maintains healthy asset quality

 

Public sector lender Bank of Maharashtra on July 19 reported a 95 percent jump in net profit at Rs 882 crore for the April-June FY24 quarter, compared to Rs 451 crore in the corresponding quarter last year.

Net interest income (NII) of the bank stood at Rs 2340 crores, compared to Rs 1686 crores last year. The bank recorded steady improvement in its net interest margin (NIM). For the April-June FY24 quarter, the lender's NIM stood at 3.86 percent, compared to 3.28 percent last year.

The bank's gross non-performing asset (NPA) stood at 2.28 percent, down from 3.74 percent recorded in the same quarter last year. For the June quarter, total GNPA stood at Rs 4006 crores compared Rs 5259 crores a year ago. On the other hand, net NPA of the lender for the quarter stood at 0.24 percent, improving from 0.88 percent on a year-on-year basis. The lender's total NNPA stood at Rs 413 crores, compared to 1206 crores in the corresponding period last year.

On deposits front, the bank recorded a 25 percent growth taking the total deposits to Rs 2.44 lakh crores from Rs 1.96 lakh crores in the previous year. Current account and savings account (CASA) deposits improved to Rs 1.24 lakh crores from Rs 1.09 lakh crores with current account deposits recording 30 percent growth and savings account deposits recording 9 percent growth.

Gross advances of the bank grew by 25 percent on a year-on-year basis and stood at Rs 1.75 lakh crores compared to Rs 1.40 lakh crores in the year ago quarter.

Looking at the bank's segment wise advances growth, retail sector recorded advances of Rs 44, 952 crores compared to Rs 36,117 crores in the April-June FY23 quarter. Advances to agriculture sector stood at Rs 23,637 crores compared to Rs 19,336 crores last year. Micro small and medium enterprises recorded advances of Rs 33,740 crores for the April-June FY24 quarter compared to Rs 26,121 crores in the corresponding period last year.

The revenue for the bank's treasury operations stood at Rs 1169 crores, growing from Rs 938 crores last year.

Corporate and wholesale operations recorded a revenue of Rs 2028 crores in the April-June FY24 quarter compared to Rs 1217 crores in the same period last year.

Whereas the revenue of the lender's retail operations stood at Rs 2174 crores compared to Rs 1557 crores.

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RBI imposes Rs. 2.5 crore penalty on three banks

The Reserve Bank of India (RBI) imposed a monetary penalty on three private and public sector lenders on Friday. The central bank charged Jammu & Kashmir Bank with Rs.2.5 crore penalty, while the Bank of Maharashtra faced a fine of Rs.1.45 crore. Axis Bank received the least amount of penalty among them to the tune of Rs.30 lakh.

Jammu & Kashmir Bank:

RBI imposed a Rs.2.5 crore penalty on J&K Bank for non-compliance with certain directions issued by RBI on ‘Creation of a Central Repository of Large Common Exposures-Across Banks’, read with ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, ‘Loans and Advances – Statutory and other Restrictions’ and ‘Time-bound implementation and strengthening of SWIFT-related operational controls’.

According to RBI's inspection, J&K Bank non-complied in --- (i) failed to ensure integrity and quality of data submitted to CRILC, (ii) extended term loans to a corporation (a) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects are sufficient to take care of the debt servicing obligations and (b) failing to ensure that the repayment/servicing of said term loans were not made out of budgetary resources and (iii) created financial/non-financial messages in SWIFT without first ensuring that the underlying transactions have been duly reflected in the CBS.

Bank of Maharashtra:

This government-owned bank was imposed with Rs.1.45 crore penalty for non-compliance with certain directions issued by RBI on ‘Loans and Advances – Statutory and Other Restrictions’ and Advisory on ‘Man in the Middle (MiTM) Attacks in ATMs’ (the Advisory).

BoM committed non-compliance in the extent of --- (1) it sanctioned a term loan to a Corporation (i) in lieu of or to substitute budgetary resources envisaged for certain projects; (ii) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (iii) the repayment/servicing of which was made out of budgetary resources, and (2) it failed to implement required control measures for ATMs relating to end-to-end encryption of communication between the ATM terminal/PC and the ATM Switch, within the prescribed timeline.

Axis Bank:

Axis Bank, one of the leading private sector lenders, was penalised with Rs.30 lakh due to its non-compliance with certain provisions of the RBI directions on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances – Credit Card Accounts’.

As per RBI's inspection, Axis Bank had levied penal charges in certain accounts for late payment of credit card dues though the customers had paid the dues by the due date, through third party platforms.

Notably, before imposing the charges, RBI had sent notices to these three banks --- advising them to show cause as to why a penalty should not be imposed on them for failure to comply with the directions issued.

After considering the banks' reply to the notice, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted the imposition of monetary penalty on these banks.

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Bank of Maharashtra Q1 result: profit more than doubles

 Bank of Maharashtra's net profit more than doubled to Rs 451.90 crore in the April-June quarter compared to Rs 208.01 crore in the year-ago quarter, the lender said on Monday. Total income during April-June 2022-23 fell to Rs 3,774.32 crore from Rs 3,790.72 crore in the same quarter of 2021-22, the state-owned bank said in a regulatory filing.

The bank's asset quality improved with the gross non-performing assets falling to 3.74 per cent of the gross advances as of June 30, 2022, as against 6.35 per cent in the year-ago period.

In value terms, gross NPAs stood at Rs 5,259.62 crore by Q1FY23, down from Rs 7,021.63 crore by Q1FY22.

The net NPAs came down to 0.88 per cent (Rs 1,206.43 crore) from 2.22 per cent (Rs 2,352.75 crore).

Provisions for bad loans and contingencies for the quarter fell to Rs 548.41 crore from Rs 753.10 crore in the same quarter of FY22.

The Pune-based lender said there was an impact due to change in accounting policy, resulting in decrease in other income and net profit after tax by Rs 22.03 crore during the quarter ended June 30, 2022.

Provision coverage ratio (PCR) as of June 30, 2022 is 95.04 per cent, Bank of Maharashtra said.

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Privatisation Of Bank: Two banks to be sold in the country, centre to speed up law change process

 

The Centre speed up the process of privatising two State-owned banks. News agency PTI quoted a source from the Centre as saying on Wednesday. The Modi government at the Centre had earlier amended the 'Banking Regulation Act' to pave the way for private investment in State-owned banks. According to sources, the Centre wants to pass a bill in this regard in the upcoming monsoon session of Parliament.

Union Finance Minister Nirmala Sitharaman had said last year that the Centre wants to start the process of privatising some state-owned banks. Therefore, the Bank Nationalization Acts of 1970 and 1980 will be amended and the Bank Control Act of 1949 will be amended. According to finance ministry sources, the process has begun. The government has also started preparing the draft of the 'Banking Regulation Act'. If all goes well, the amendment will be passed in the monsoon session. Of course, there is a good chance of the opposition being hindered. However, due to the majority, the government should not have any problem in passing this law.

The amendment has been passed in parliament and there will be no bar on the privatization of State-owned banks. Only then will the process of privatization of state-owned banks begin. Initially, two state-owned banks have also been listed for disinvestment. The name of which two banks will be privatised is yet to be announced by the Centre. According to sources, the Modi government initially chose four medium-sized banks for privatisation. The four banks that were placed in the initial list for privatisation are Bank of Maharashtra (BoM), Bank of India (BoI), Indian Overseas Bank(IOB) and Central Bank of India. Later, niti aayog proposed that most of the shares of Indian Overseas Bank and Central Bank of India be sold. The Modi government can go ahead with the NITI Aayog's proposal.

This is not the end of it, the government also wants to complete the privatization process of the tate-owned company BPCL quickly. Sources claim that only 52.3 per cent stake in BPCL held by the Centre will be sold. Earlier, the Modi government had taken the initiative to sell the shares of BPCL. Initially three companies showed interest in buying bpcl shares. But in the end, only one company survives in the race, the sources claim.

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Bank of Maharashtra Q4 profit increase two fold

 

 Bank of Maharashtra on Thursday reported an over two-fold increase in its consolidated net profit at Rs 355 crore in the quarter ended March, helped by a fall in the bad loan proportions, thus requiring lesser provisioning.

The Pune-based lender had posted a net profit of Rs 165.23 crore in the year-ago period.

Total income of the bank, however, was down at Rs 3,948.48 crore in the January-March quarter of 2021-22, as against Rs 4,334.98 crore in the same quarter of 2020-21, Bank of Maharashtra said in a regulatory filing.

For the full year 2021-22, the bank's consolidated net profit doubled to Rs 1,151.64 crore, as against Rs 551.41 crore in 2020-21.

Total income was higher at Rs 15,672.17 crore during the year, from Rs 14,497.56 crore in the previous fiscal 2020-21.

Bank's provisioning for bad loans and contingencies for Q4FY22 came down to Rs 365.38 crore, from Rs 1,341.26 crore parked aside in the year-ago period.

On the asset quality, there was a significant improvement with Gross Non-Performing Assets (NPAs) falling to 3.94 per cent of the gross advances as of March 31, 2022 from 7.23 per cent by March end 2021.

Net NPAs or bad loans shrank to 0.97 per cent as against 2.48 per cent.

In value terms, the gross NPAs were worth Rs 5,327.21 crore, down from Rs 7,779.68 crore. Net NPAs were of the value of Rs 1,276.57 crore, down from Rs 2,544.32 crore.

The consolidated financial results of the bank include results of the holding company --Bank of Maharashtra, subsidiary company The Maharashtra Executor and Trustee Company Pvt Ltd and the associate company Maharashtra Gramin Bank.

Provision coverage ratio of the bank stood at 94.79 per cent as of March 31, 2022.

The lender said that with effect from assessment year 2021-22, it has opted for the new regime of tax under Income Tax Act, 1961.

"Consequently, during the current year, the bank has remeasured its deferred tax assets and deferred tax liabilities as on December 31, 2021 and reversed the amount of Rs 716.87 crore by debiting from profit and loss account," it said.

The board members of the bank also approved raising of Rs 5,000 crore capital through follow-on public offer, rights issue, qualified institutional placement, preferential issue or any other mode or combination thereof or through issue of Basel III compliant bonds or any other such securities.

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