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.

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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Top 10 Banks in India as per Market Cap

 

The banking sector plays a crucial role in the growth and development of any economy. In India, the banking sector has significantly evolved over the past decade, with a tech-savvy population and a booming economy. As of 2024, the top banks in India, based on market capitalization, are also among the top banks globally. HDFC Bank holds the position of the largest bank in India in terms of market capitalization. Let’s have a look at the Top 10 Banks in India as per Mcap.

Top 10 Banks in India as per Market Cap (as on 12.04.2024)

Rank	Rank	Market Cap (Rs Lakh Crore)
1	HDFC Bank	1,153,894.76
2	ICICI Bank	775,447.63
3	SBI	684,294.62
4	Kotak Mahindra	359,803.74
5	Axis Bank	330,873.03
6	Punjab National Bank	148,373.43
7	Bank of Baroda	138,514.94
8	Indian Overseas Bank	121,069.95
9	IndusInd Bank	120,639.59
10	Union Bank	113,855.23

Read More - Top 10 Largest Banks 2023

Read More - Best Banks in India 2023

Public Sector Banks Market Cap (as on 12.04.2024)

Bank Name	Market Cap (Rs. cr)
SBI	684,294.62
PNB	148,373.43
Bank of Baroda	138,514.94
IOB	121,069.95
Union Bank	113,855.23
Canara Bank	109,900.01
Indian Bank	70,917.65
UCO Bank	65,913.20
Bank of India	65,262.49
Central Bank	55,471.20
Bank of Mah	45,051.70
Punjab & Sind	41,080.16

Private Banks Market Cap (as on 12.04.2024)

Bank Name	Market Cap (Rs. cr)
HDFC Bank	1,153,894.76
ICICI Bank	775,447.63
Kotak Mahindra	359,803.74
Axis Bank	330,873.03
IndusInd Bank	120,639.59
IDBI Bank	93,384.61
Yes Bank	69,757.78
IDFC First Bank	59,634.81
AU Small Finance Bank	47,372.34
Federal Bank	37,985.11
Bandhan Bank	29,472.69
RBL Bank	15,647.74
Karur Vysya Bank	15,431.97
J&K Bank	15,157.78
City Union Bank	11,513.74
Equitas SFB	11,365.90
Ujjivan SFB	10,551.87
Karnataka Bank	8,774.83
Tamilnad Mercantile Bank	7,784.56
South Indian Bank	7,429.23
CSB Bank	6,671.40
Utkarsh SFB	5,827.12
Jana SFB	4,660.54
DCB Bank	3,860.45
ESAF SFB	3,142.73
Suryoday SFB	2,009.85
Capital SFB	1,614.55
Dhanlaxmi Bank	1,172.71

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Finance Ministry asks 5 PSU Banks to decrease Govt shareholding by 1st August

The Finance Ministry has instructed five public sector banks in India to increase their minimum public shareholding to 25% by August 1, in line with regulatory requirements. This directive is part of the Securities Contract (Regulation) Rules, which mandate all listed companies, including public sector entities, to maintain a minimum public shareholding of 25%.

The five public sector banks that have yet to meet this requirement are UCO Bank, Central Bank of India, Punjab & Sind Bank, Bank of Maharashtra, and Indian Overseas Bank. These banks currently have public shareholdings ranging from 1.75% to 13.54%.

Read More - Shareholding Pattern of Government in Public Sector Banks

Nationalized Banks (Government Shareholding %, as at end-March 2023)

1. State Bank of India (57.59%)

2. Canara Bank (62.93%)

3. Bank of Baroda (63.97%)

4. Punjab National Bank (73.15%)

5. Indian Bank (79.86%)

6. Bank of India (81.41%)

7. Union Bank of India (76.99%)

8. Bank of Maharashtra (90.90%)

9. Central Bank of India (93.08%)

10. UCO Bank (95.39%)

11. Indian Overseas Bank (96.38%)

12. Punjab and Sind Bank (98.25%)

Sources familiar with the matter suggest that the Securities and Exchange Board of India (SEBI) may consider granting exemptions to some public sector banks and other public sector undertakings (PSUs) to gradually achieve compliance with the 25% minimum public shareholding norms by August 2024. State-run lenders are reportedly raising capital through Qualified Institutional Placement (QIP), which leads to a dilution of the government’s stake. However, there are currently no plans for a direct share sale in any public sector bank.

It is worth noting that the government’s stake in the five state-run banks exceeds 75%, resulting in unsold government stakes valued at over Rs 65,000 crore at current market prices. Additionally, several other government enterprises, including IRFC and SJVN, also have government stakes exceeding 75%.

In related developments, the central government has divested its holdings in six public sector units (PSUs) over the past year. These include Hindustan Aeronautics Ltd., RVNL, SJVN, Coal India, HUDCO, and NHPC. The shares of four of these companies have already doubled from their Offer for Sale (OFS) floor price.

It is important to note that the Finance Ministry has recently amended the Securities Contracts (Regulation) Rules, 1957 to exempt listed public sector companies from the minimum public shareholding norm. This exemption comes ahead of the three-year timeframe given to listed PSUs to conform to the norm. The amendment allows listed entities to have at least 25% public shareholding, which can be held by anyone other than a promoter, including institutions or individuals.

These recent developments highlight the government’s efforts to ensure compliance with minimum public shareholding requirements and promote transparency in the functioning of listed companies in India.

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These three PSU Banks get new Chairman

 

The Appointments Committee of the Cabinet (ACC) has appointed former LIC Chairman M R Kumar as part time non official Director as well as non-executive Chairman of Bank of India (BOI).

 

He has been appointed as BOI Chairman for a term of three years.

ACC has also appointed Srinivasan Sridhar, as part time non official Director as well as non Executive Chairman on the Board of Indian Overseas Bank (IOB). Sridhar has been appointed for a term of three years subject to the condition that he resigns from the Board of Bank of Baroda.

In another decision, ACC has appointed Aravamudan Krishna Kumar as part time non official Director as well as non Executive Chairman on the Board of UCO Bank. Kumar has been appointed for a term of three years subject to his resignation from the Board of Suraksha Asset Reconstruction Limited, according to an order issued by the Department of Personnel & Training.

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PSU banks profit increased by 40% in FY24; Which is the top performing lenders?

Due to increased interest revenue, decreased credit costs, and better asset quality, public sector banks were able to record another respectable set of results for the December quarter. Twelve Indian public sector banks (PSBs) reported a total profit in Q3FY24 of Rs. 30,297 crore, up 3.84% from Rs. 29,175 crore during the same time the previous year.

PSBs have made a cumulative profit of Rs. 98,358 crore for the first nine months of the current financial year, up 40.17% from Rs. 70,166 crore during the same period last year. Public sector banks made a total profit of roughly Rs. 34,418 crore in Q1 and Rs. 33,643 crore in Q2 of the current fiscal year.

In Q3, Punjab National Bank's net profit increased by 253% YoY to Rs. 2,223 crore, making it the top performer in terms of percentage profit growth. Improved asset quality and increased interest revenue contributed to the largest profit in the previous fifteen quarters.

Also Read:  Results of PSU & Private Banks for Q3FY24

With a YoY increase in net profit of nearly 62% and a total of Rs. 1,870 crore, Bank of India emerged in second place, largely due to declining bad loan levels.

Following closely behind, Union Bank of India reported a 60% increase in net profit to Rs. 3,590 crore in Q3 FY24 from Rs. 2,245 crore in the December quarter of FY23. Its other revenue increased dramatically to Rs. 3,774 crore, up 15.37% YoY.

Similarly, the Central Bank of India reported a 56% YoY increase in net profit in Q3 FY23 to Rs. 718 crore, up from Rs. 458 crore in Q3 FY23.

In Q3 FY24, Bank of Maharashtra also reported strong results, with its net profit rising 34% to Rs. 1,036 crore. The bank reported a net profit of Rs. 775 crore for the same period in the previous year.

At a time when most public sector lenders are struggling to achieve double-digit growth, the bank recorded the highest growth rate in terms of deposit mobilization. In the third quarter ending in December 2023, just two of the twelve public sector banks—Bank of Maharashtra (BoM) and State Bank of India (SBI)—saw double-digit increase in deposits.

The standalone net earnings of Indian Overseas Bank, Canara Bank, and Bank of Baroda increased at rates of 30.27%, 27%, and 19% year over year, respectively.

State Bank of India (SBI) announced a 35.50% YoY decline in its standalone net profit to Rs. 9,164 crore, attributed to weaker other income and increased pay provisions. In 3Q, SBIN set aside Rs. 6,300 crore for wage-related expenses, representing a 17% increase in pay.

During the same period, standalone net profit of UCO Bank and Punjab & Sind Bank decreased year over year by 23% and 69%, respectively.

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PSU Banks Q3FY24 results comparisons

 

All Public Sector Banks of India has declared result of Q3FY24. All PSU banks generates profit for this quarter. Let's compare the results of these banks. 

Compiled by - K K Khanna, Former AGM UBI

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State Bank of India(SBI) Q3 FY24 Net profit falls 35%

 

State Bank of India (SBI) on Saturday reported a net profit of Rs 9,163 crore for Q3 quarter for FY24, which was 35 per cent less than Rs 14,205 crore clocked in the year-ago period.

The public lender though reported a standalone net profit of Rs 40,378 crores for the first nine months of FY24, which was 20.40 per cent up from Rs 33,538 crore in Q3 FY23

The bank said it has earned Rs 105,733.78 crore in interest income in Q3 FY24, which was up 22% from Rs 86,616.04 crore reported in the year-ago period. Of which, the bank paid Rs 66,918 crore in interests in the October-December quarter. The net interest income (NII) of the country's largest bank stood at Rs 39,815 crore, missing estimates of Rs 40,304 crore.

Whole Bank NIM for 9MFY24 decreased by 1 bp YoY to 3.28% while Domestic NIM for 9M FY24 decreased by 8 bps YoY to 3.41%.

The bank's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.64 per cent compared to 0.77 per cent last year. Bank’s returns on assets (RoA) for Q3FY24 stood at 0.62% while for 9MFY24 the RoA and returns on equity (ROE) stood at 0.94% and 19.47% respectively.

Gross NPA ratio at 2.42% improved by 72 bps YoY. Net NPA ratio at 0.64% improved by 13 bps YoY. PCR (Incl. AUCA) stands at 91.49%. Provision Coverage Ratio (PCR) at 74.17% declined by 195 bps YoY. Slippage Ratio for 9MFY24 improved by 5 bps YoY and stands at 0.67%. Slippage Ratio for Q3FY24 increased by 17 bps YoY and stands at 0.58%. Credit Cost for Q3FY24 remained flat YoY at 0.21%.The bank's operating profit for Q3 stood at Rs 20,336 crore.

Credit growth at 14.38% YoY with Domestic Advances growing by 14.47% YoY. Corporate Advances and SME Advances cross Rs 10 lakh crore and Rs 4 lakh crores. respectively. Foreign Offices’ Advances grew by 13.90% YoY. Domestic Advances growth driven by SME Advances (19.24% YoY) followed by Agri Advances which grew by 18.12% YoY. Retail Personal Advances and Corporate loans registered YoY growth of 15.28% and 10.71%, respectively. Whole Bank Deposits grew at 13.02% YoY, out of which CASA Deposit grew by 4.48% YoY. CASA ratio stands at 41.18% as on December 31, 2023.

The decline was as expected by analysts. Kotak Institutional Equities expected operating profit growth to be decline sharply by 18.3 per cent Y-o-Y to Rs 20,613 crore from Rs 25,219.3 crore earned in Q3FY23. 

"We are building net interest margin (NIM) to decline around 7 basis points Q-o-Q/19 bps Y-o-Y, but do see a possibility of stable performance given the structure of loan book and neglibile need for deposits to fund this growth. Operating expenses would be higher due to wage revision related costs (final settlement impact)," Kotak Institutional Equities said in its results preview report.

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Bank of Baroda(BoB) Q3 results: Net profit jumps 19%

 

Bank of Baroda on Wednesday, January 31, reported an 18.8% rise in net profit reaching ₹4,579 crore in the third quarter of the 2023-24 fiscal as compared to ₹3,852.7 crore last year. The lender's net interest income (NII) stood at ₹11,101 crore, slightly surpassing the CNBC-TV18 poll estimate of ₹11,085 crore.

This represents a year-on-year (YoY) increase of 2.6%, rising from ₹10,818.3 crore.

The bank displayed some improvement in asset quality, with Gross NPA (Non-Performing Assets) at 3.08% as opposed to 3.32% in the previous quarter.

Net NPA also witnessed a decline, standing at 0.70%, down from 0.76% in the previous quarter.

Gross NPA amounted to ₹32,317 crore, a decrease from ₹33,978.5 crore in the previous quarter. Net NPA reduced to ₹7,208.3 crore from ₹7,596.7 crore in the last quarter.

The bank made provisions of ₹666.3 crore, significantly lower than the ₹2,404 crore reported YoY and ₹2,160.6 crore in the previous quarter.

The Cost to Income ratio demonstrated a reduction by 123 basis points (bps) YoY, reaching 47.13% for the nine months ending December 2023 (9MFY24).

The Global Net Interest Margin (NIM) of the lender improved by 3 basis points sequentially, standing at 3.10% in Q3FY24, compared to 3.07% in Q2FY24.

The Net Interest Margin for 9MFY24 is reported at 3.14%.

The credit cost remained below 1%, reporting 0.69% for 9MFY24 and 0.39% for the quarter.

The bank maintained a healthy liquidity coverage ratio at 133% as of December 31, 2023.

Bank of Baroda's global advances registered growth of 13.6% YoY in Q3FY24, driven by robust retail loan book growth.

The bank's organic retail advances grew by 22%, propelled by growth in high-focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%).

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