Bank of Maharashtra Surpasses PSU Banks in Profits

Asset quality and deposit mobilisation revamped as Bank of Maharashtra witnesses unrivalled gross advances.

Bank of Maharashtra Surpasses PSU Banks in Profits
Bank of Maharashtra Surpasses PSU Banks in Profits
PTI - 11 June 2021

During the fiscal year 2020-21, the Bank of Maharashtra (BoM) was the best performer among public sector lenders in terms of loan and deposit growth. According to figures issued by the Bank of Maharashtra, total advances increased by 13.45 per cent to Rs 1.07 lakh billion in 2020-21.

It was followed by Punjab & Sind Bank, which reported an 8.39 per cent increase in advances at the end of March, with total loans of Rs 67,811 crore. With over 16 per cent growth in deposit mobilisation, BoM outpaced even the country's largest lender, State Bank of India, which saw a 13.56 per cent increase. In absolute terms, however, SBI's deposit base was 21 times larger, at Rs 36.81 lakh crore, compared to BoM's Rs 1.74 lakh crore.

During the year, BoM's Current Account Savings Account (CASA) increased by 24.47 per cent, the largest among public sector lenders. As a consequence, CASA accounted for 54 per cent of the bank's total liabilities of Rs 93,945 crore.

The Central Bank of India came in second, with a CASA of Rs 1.61 lakh crore, up 11.46 per cent over the previous quarter's figures. BoM's total revenue climbed 14.98 per cent to Rs 2.81 lakh crore. BoM's standalone net profit increased by roughly 42 per cent to Rs 550.25 crore in 2020-21. Profit was Rs 388.58 crore the prior year. By the end of March, gross bad loans, also known as gross non-performing assets, had dropped to 7.23 per cent of gross advances, compared to 12.81 per cent at the same period in 2020.

Gross bad loans were Rs 7,779.68 crore at the end of March 2021, down from Rs 12,152.15 crore the previous year. Net non-performing assets dropped from 4.77 per cent (Rs 4,145.38 crore) to 2.48 per cent (Rs 2,544.32 crore).

Advertisement*