This Public Sector Mid-Cap Bank Emerges As Top Performer In NPA Management During FY23

Bank of Maharashtra, one of the leading public sector banks (PSB) has emerged as the best bank as far as management of bad loans is concerned. Its net non-performing assets (NPAs) have fallen as low as 0.25% during the financial year that ended March 2023.

It is the lowest ratio among all banks having total business above Rs 3 lakh crore and not just public sector banks (PSBs), according to published yearly numbers of banks, reported by PTI.

The Pune-based state-owned lender was followed by HDFC Bank with net NPA falling to 0.27% and Kotak Mahindra Bank clinching the third spot with 0.37% of net advances.

On the PSB side, Bank Of Maharashtra was followed by the country's biggest lender State Bank of India with net NPAs falling to 0.67% and Bank of Baroda at 0.89% at the end of March 2023.

Besides the lowest NPA, Bank of Maharashtra also has the highest Provision Coverage Ratio at 98.28% followed by UCO Bank at 94.50% and Indian Bank at 93.82%.

Among its PSB peers, even the Capital Adequacy Ratio(CAR) of this mid-cap bank has the highest CAR of 18.14% followed by Punjab & Sind Bank at 17.10% and Canara Bank at 16.68% as on March 31, 2023.

In terms of loan growth, the Bank of Maharashtra has retained the top spot among the scheduled commercial banks by recording a 29.49% increase on an annual basis, as per the published data of banks. While Indian Overseas Bank stood at the second spot with a rise of 21.28% followed by Indusind Bank at 21%.

The country's largest lender State Bank of India has shown a 15.38% rise in loans during FY'23. With regards to deposits growth rate, HDFC Bank was at the first spot with 20.80%, followed by Federal Bank with a 17% rise and Kotak Mahindra Bank with a 16.49% rise.

However, in terms of low-cost Current Account and Savings Account (CASA) deposits Bank of Maharashtra again topped the chart with 53.38% followed by IDBI Bank with 53.02% and Kotak Mahindra Bank at 52.83%.

The latest closing price of Bank of Maharashtra stock has rallied by 1.07% to Rs 29.22 per share on an intraday basis. In the last one year, the share price has zoomed up sharply by 76.56% but over three years it has soared up 242.15%.