Shares of Bank of Maharashtra (BoM) on Monday rallied nearly 5 per cent after the company reported a two-fold jump in its standalone profit after tax (PAT) in the quarter ended December 2022.
On the BSE, shares of the company climbed 4.26 per cent to settle at Rs 33.05 each. During the day, it jumped 8.51 per cent to Rs 34.40. The stock advanced 4.73 per cent to end at Rs 33.20 apiece on the NSE.
The state-owned BoM reported a two-fold jump in its standalone Profit After Tax (PAT) at Rs 775 crore in the quarter ended December 2022 due to improved asset quality. The Pune-based bank had posted a net profit of Rs 325 crore in the year-ago quarter.
Speaking about quarterly number, BoM managing director A S Rajeev said the net profit surged by a 138.76 per cent and operating profit has shown a growth of 35.94 per cent to Rs 1,580 crore as against Rs 1,162 crore in the same quarter a year ago.
He said the bank aims to protect the profit growth in the current quarter and also maintain the Net Interest Margin (NIM) at the current level of 3.6 per cent. Net Interest Income (NII) of the bank grew by 29.65 per cent on a year-on-year basis to Rs 1,980 crore as against Rs 1,527 crore in the third quarter of the previous fiscal.
The bank's total income increased to Rs 4,770 crore in the latest December quarter from Rs 3,893 crore in the year-ago period.
On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 2.94 per cent, as compared to 4.73 per cent at the end of third quarter of previous fiscal.
At the same time, net NPAs eased below 1 per cent to 0.47 per cent, as against 1.24 per cent in the same period a year ago. Rajeev also said that the bank would maintain gross NPA below 3 per cent while net NPA below 0.5 per cent.
On the outlook for recoveries, Rajeev said, the bank expects total recoveries of Rs 1,000 crore during the current financial year. The bank expects Rs 153 crore from the resolution of Jaypee Infratech, he said, adding that the bank has transferred 13 accounts to National Asset Reconstruction Company (NARCL).
Besides, the bank expects resolution from debt-ridden Srei which is undergoing the insolvency process.
With regard to network expansion, he said, it will increase to 2,200 branches by the end of the current financial year. Currently, the bank has 2,128 branches spread across the country.
(With PTI inputs)