Bank of Maharashtra Q4 Results: Net Profit Jumps 45% To Rs 1,218 Cr, NII Surges 18.17%

Financial results for the quarter and year ending March 31, 2024, have been released by Bank of Maharashtra. On a year-on-year basis, net profit rose by 44.95% to Rs 1,218 crore in Q4FY24 from Rs 840 crore in Q4FY23. Operating Profit climbed to Rs 2,210 crore for Q4FY24 from Rs 1,855 crore in Q4FY23, a YoY rise of 19.10%. Net Interest Income (NII) for the bank went up from Rs 2,187 crore in Q4FY23 to Rs 2,584 crore in Q4FY24, representing a YoY growth of 18.17%. Net revenues for the PSU Bank shot up from Rs 3,009 crore in Q4FY23 to Rs 3,606 crore in Q4FY24, a 19.85% growth.

Net Profit for the year ended FY24 climbed by 55.84% to Rs 4,055 crore on a year-on-year basis, from Rs 2,602 crore for the year ended 31.03.2023. In comparison to the previous year, when it was Rs 7,741 crore, Net Interest Income (NII) increased by 26.88% on a year-on-year basis to Rs 9,822 crore for the year that ended on March 31, 2024.

According to the Bank of Maharashtra (BoM), its Q4FY24 Cost to Income Ratio is 38.72%, up from 38.34% in Q4FY23. For the quarter that ended on December 31, 2023, it was 36.04 per cent. According to the bank, Return on Equity (ROE) increased to 28.35 per cent for Q4FY24 versus 26.32 per cent for Q4FY23 and 24.51 per cent for Q3FY24, while Return on Assets (ROA) rose to 1.73 per cent for Q4FY24 against 1.32 per cent for Q4FY23 and 1.55% for Q3FY24.

The bank said its total business grew by 15.94% Y-o-Y to Rs 474,411 crore whereas total deposits increased by 15.66% to Rs 270,747 crore. The bank's gross advances grew by 16.30% to Rs 203,664 crore whereas net advances grew by 16.95 % to Rs 200,240 crore.

Regarding asset quality, the bank's Gross Non-Performing Asset (NPA) dropped to 1.88 % on March 31, 2024, from 2.47 % on the same period in 2023. It remained at 2.04% until December 31, 2023. As of March 31, 2024, the bank's Net NPA dropped to 0.20% from 0.2% in the same quarter of 2023. The same as on December 31, 2023, was 0.22%. The provision coverage ratio went up from 98.28% on March 31, 2023, to 98.34% on March 31, 2024. The same as on December 31, 2023, was 98.40%.

During the year ended on 31st Mar 2024, the bank has raised a total capital of Rs 1774 crore which includes equity of Rs 1000 crore & Tier II bond of Rs 774 crore.

The Board of Directors has "Recommended a dividend of 14% ie., Rs. 1.40 per equity share of Rs. 10/- each fully paid out of the net profits for the year ended March 31, 2024, subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Bank," said Bank of Maharashtra in a regulatory filing on Friday.

The Board also approved raising of capital upto 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, as per a stock exchange filing dated 26th April.